city of vernon annual report

2014City of Vernon Annual Report

Fiscal Year Ended December 31, 2014

VERNON BRITISH COLUMBIA CANADA

http://sproingcreative.com/CITY_OF_VERNON/index_7.html

Vernon City Council 5 Canadian Award for Financial Reporting 6 Our Mission Statement 7

INTRODUCTORY SECTION Message from the Mayor 8 Message from the Chief Administrative Officer 9 Report from the Chief Financial Officer 10 History 11 Points of Interest 12 Organizational Structure 14 Services Provided to our Residents 15 Senior Management Team 16 Revenue Policy Targets and Results 2014 17 Capital Asset Deficit 2014 17 2015-2018 Council Strategic Plan 18 2014 ACCOMPLISHMENTS

Administrative Services 29 Community Development Services 30 Corporate Services 33 Engineering/GIS Services 35 Financial Services 38 Fire Rescue Services 40 Human Resources Services 45 Operation Services 47 RCMP 49 Recreation Services 50

Awards and Recognition 52 Committees, Boards and Commissions 53 Permissive Tax Exemptions 54 Council Remuneration and Expenses 57 Employee Remuneration and Expenses 58 Statement of Severance and Agreements 61 Consulting Fees Paid 62 Grants to Organizations 64 Payments to Vendors in Excess of $25,000 65 DIVISIONAL SUMMARIES

Administrative Services 72 Corporate Services 73 Community Development Services 78 Engineering/GIS Services 82 Financial Services 84 Fire Rescue Services 88 Human Resources Services 90 Operation Services 92 RCMP Services 96 Recreation Services 98

FINANCIAL SECTION Consolidated Financial Statements 100 Management’s Responsibility for the consolidated 101

financial statements letter Auditors Report 102 Statement A – Consolidated Statement of Financial Position 104 Statement B – Consolidated Statement of Operations 105 Statement C – Consolidated Statement of Change in Net Financial Assets 106 Statement D – Consolidated Statement of Cash Flows 107 Notes to the Consolidated Financial Statements 108 Exhibit 1 – Schedule of General Revenue Fund Operations 130 Exhibit 2 – Schedule of Sewer Revenue Fund Operations 131

STATISTICAL SECTION Summary of Financial Results 133 Accumulated Surplus 134 Property Tax Revenue 135 Consolidated Revenue by Source 136 Consolidated Expense by Function 137 Consolidated Expense by Object 138 Number of Employees 139 Cost of Salaries, Wages and Benefits 140 Capital Spending 141 Capital Funding by Source 142 Long-Term Debt by Function and Sources of Funding 143 Long-Term Debt by Capacity 144 Taxable Property Assessments 145 Principal Corporate Tax Payers 146 Building Permits and Business Licences 147 Municipal Comparison 148 Population Demographics 149

Table of Contents



City of Vernon | 2014 Annual Report

Introductory Section

City of Vernon | 2014 Annual Report 4


VERNON CITY COUNCIL CONTACTS Akbal Mund Mayor [email protected] Juliette Cunningham Councillor [email protected] Catherine Lord Councillor [email protected] Dalvir Nahal Councillor [email protected] Scott Anderson Councillor [email protected] Brian Quiring Councillor [email protected] Bob Spiers Councillor [email protected]

Vernon City Council

(Back, L-R) Councillor Dalvir Nahal, Councillor Catherine Lord, Councillor Scott Anderson, Councillor Juliette Cunningham

(Front, L-R) Councillor Bob Spiers, Mayor Akbal Mund, Councillor Brian Quiring

There were no declarations of disqualification under Section 111 of the Community Charter.

City Council




The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Canadian Award for Financial Reporting to the City of Vernon for its annual financial report for the fiscal year ended December 31, 2013. The Canadian Award for Financial Reporting program was established to encourage municipal governments throughout Canada to publish high quality financial reports and to provide peer recognition and technical guidance for officials preparing these reports.

In order to be awarded a Canadian Award for Financial Reporting, a government unit must publish an easily readable and efficiently organized annual report, whose contents conform to program standards. Such reports should go beyond the minimum requirements of generally accepted accounting principles and demonstrate an effort to clearly communicate the municipal government's financial picture, enhance an understanding of financial reporting by municipal governments, and address user needs.

A Canadian Award for Financial Reporting is valid for a period of one year only. We believe our current report continues to conform to the Canadian Award for Financial Reporting program requirements, and we are submitting it to GFOA.




OUR MISSION STATEMENT To preserve and enhance our unique environment

and lifestyle on behalf of the people of Vernon

through the provision of dynamic and accountable leadership

and effective municipal services



June 5, 2015

On behalf of Vernon City Council and staff, we are pleased to present the Annual Report for 2014. We continue to work hard to maintain the quality of services to all our citizens and visitors to our community.

City Council is committed to being sensitive to the prevailing economic conditions and will make efforts to keep this on the forefront of our expenditures. Managing a municipal budget is, at the best of times, a challenging undertaking and one of great responsibility. Out of Vernon’s overall revenues, the taxes that we levy account for only 41.4% of our total revenues. The balance of our revenues includes user fees, sales of service and Federal and Provincial grants. Vernon’s total taxation in 2014 was $32,413,000. For our tax supported expenditures, 33.36% flows to Operation Services, 31.94% to RCMP, 11.15% to General Government, 6.6% to Planning and Engineering Services, and 16.95% to Protective

Services. In addition to these revenues and expenditures, we collect taxes on behalf of other governmental organizations, including the Province and the Regional District of North Okanagan and remit the funds to those governments. In 2014, the amount for Vernon was $34,778,823. These statistics are displayed in the body of this report, and serve to illustrate how residents of our City contribute to other levels of government.

The revenues that are collected and expended are used to deliver a large and diverse group of services to our citizens. Some of these services are mandated by law and some are a result of the wishes and aspirations of our evolving and dynamic community and its citizens.

Mayor and Council try to interpret, and reflect, the needs and wishes of the community and to lead with policies that build the assets and programs that accomplish those needs and wishes.

We continue to provide and improve the services our citizens expect in infrastructure and provision for clean water, sewer, roads and sidewalks. The provincial government has mandated changes to our water treatment and delivery system which will require large expenditures in future years. We will approach those in a responsible, affordable manner.

The delivery of Parks and Recreation Services has changed significantly due to the implementation of Parks and Recreation Service Agreements. The citizens of Greater Vernon are seeing reduced overhead and administration costs, and greater administrative responsiveness with the City of Vernon administering more of the services.

Council will move forward with its Strategic Plan. We will work to represent and fulfil all aspects of that Strategic Plan on behalf of those we serve. We have a wonderful community and we are committed to guiding Vernon to the proud and sustainable future to which we all aspire.

Message from the Mayor



June 5, 2015

2015 is year three of a concerted push to restrain operating costs, create a responsible and sustainable revenue base, deliver levels of service residents and businesses expect, determine the means to replace our aging infrastructure, keep our community safe, help those most in need, grow local business while attracting new investment, and protect core community assets without mortgaging future generations. Costs of delivering city services, combined and averaged over the last three years (2013-2015) have been held to a modest increase of about 1.3% per year. Less than the Canadian Consumer Price Index.

2015 is the third year of an intended 10 year commitment to increase our investment into roads, storm water management, sewer services, sidewalks and other core city assets by setting aside the equivalent of 1.9% property tax revenues, cumulative, per year. In 2012, property tax revenues directed to municipal infrastructure was a paltry $156,000. To maintain public assets at the current standards and practices would require in the order of $10-$12 million investment per year. Improved approaches to maintaining our public assets, rethinking standards and determining core assets has reduced necessary reinvestment levels to about $7 million per year. The 1.9% approach will slowly build our capacity over 10 years to reinvest at a responsible rate while not having to debt load our children.

In December 2014 our new Council, with four returning Councillors, 2 new Councillors and Mayor Akbal Mund, assumed the reins of the City. Council remains focused on responsible fiscal management, directing in their Strategic Plan to hold operational budget increases to the rate of inflation (Canadian CPI) or less, and to continue the incremental 1.9% infrastructure reinvestment program (http://www.vernon.ca/council/documents/Councils_Strategic_Plan_2015-2018.pdf).

Council is not standing still. Under Council’s policy direction Economic Development; cost effective protective services (police, fire, emergency preparedness, bylaw compliance); enhancing our parks and recreation services; regional collaboration and thoughtful social planning will focus City resources.

After three challenging years, the City’s fiscal house is in order. Revenues are whole and reasonably sustainable, operating expenditures are held to minimal year over year increases, tax rates are competitive, and impact on service levels has been minor.

Re-investment into our infrastructure is immediate and tangible. Core reserves have been strengthened to prepare for known, as well as unpredictable challenges. The City is focusing on business retention and investment. The overall economy appears to have stabilized and new investment is flowing back into Vernon and area.

The City of Vernon is a wonderful place to live, work, invest and raise a family.

Will Pearce Chief Administrative Officer

Message from the Chief Administrative Officer



June 5, 2015

Your Worship and Members of Council,

I am pleased to present the City of Vernon's 2014 Annual Report and financial statements for the year ended December 31, 2014, in accordance with sections 98 and 167 of the Community Charter and section 2 of the Financial Administration Act.

The audited financial statements, schedules, supplementary financial and statistical information have been prepared by City staff in conformity with generally accepted accounting principles as prescribed by the Public Sector Accounting Board (PSAB) of the Chartered Professional Accountants of Canada.

Management maintains systems of internal budgetary and accounting controls that provide assurance for the safeguarding of assets and the reliability of information. These systems are monitored and evaluated by management.

The audit of our financial statements was conducted by KPMG, who were appointed by Council to express an opinion as to whether the consolidated statements prepared by management present fairly the financial position of the City as at December 31, 2014.

Vernon's approach and stated goal to improving our reporting has been consistent for a number of years. In 2009, we began receiving the Government Finance Officers Association Award (GFOA) for Financial Reporting. In 2012, we began receiving the equivalent Distinguished Budget Presentation Award from GFOA. In 2012, the City implemented its new chart of accounts, reporting using the new chart of accounts has helped us gain a higher level of financial reporting and disclosure.

Operating results from 2014 saw continued improvements in some key financial indicators, such as a transition in the City's net debt position to a net financial asset position and an increase in accumulated surplus. This is a fundamental measure of an organizations ability to meet future obligations.

An increase in financial assets of $13.51 million was combined with an increase in liabilities of $1.37 million, for an overall change in financial position of $12,141, this change in position moves the city from a net debt position to a net financial asset position. Our infrastructure deficit rose by $6.08 million to $158,321 million. This is a historical cost-based measure defined by the Public Sector Accounting Board of the unfunded, expired, useful life of our infrastructure assets. The deficit increases annually by the annual amortization charge of $11.4 million, which is a non-funded item in Vernon's Financial Plan, as well as reflecting changes in our overall levels of capital reserves. Recent levels of capital infrastructure spending will continue to increase as part of the infrastructure recapitalization program, which will be achieved over a ten year period, a sustainable level of investment in our infrastructure. Consolidated revenues were $30.8 million higher in 2014 over 2013 due to a combination of factors. The primary reasons for this increase were the addition of Parks and Recreation functions to City of Vernon records. An associated factor is the related net gains on disposition of assets related to the Parks and Recreation agreements of $11.8 million.

Consolidated expenses increased to $65.98 million — an increase of $8.93 million over 2013 levels due primarily to the transfer of functions from the Regional District. Those services, being parks and recreation, accounted for new expenditures of $8.08 million. The transition of Recreation Services affected virtually all broad expense categories in 2014.

The financial outlook for the next five years shows signs of improvement. Revitalization tax exemption programs should continue to increase the rate of reinvestment in our community.

Kevin Bertles, CPA, CGA Chief Financial Officer

Message from the Chief Financial Officer



Okanagan Indians (of

the Interior Salish)

1811 Arrival of

fur traders

1856-1878Gold rush

era

1864-1907The

ranching years

1890'sCommerci

al fruit industry begins

1892Vernon

becomes first

incorporated City in the Okanagan

Valley

1908Military heritage Vernon

takes hold

1913Economic

depression lasting

until 1923

1960's Award winning civic centre was constructed

1990'sThe City

expands its boundaries to include Silver Star Foothills, Okanagan Landing, Predator Ridge and Adnderson Subdivision

Okanagan Indian Band The rich culture of the Okanagan First Nation people is evident in this mural. The eagle, wolf and legendary spirit of the lake are shown along with Tommy Gregoire (not shown) an accomplished rodeo rider and chief Pierre Louis and his wife Catherine.

Cowboys From the 1860’s to the 1890’s, young men from all over the world came to the valley for the cowboy way of life. It was the era of the cattle ranches. The best riders and ropers were the Okanagan First Nation Cowboys. Mural is located in the alley between the parkade and 32nd Avenue.

Geisha The best way to spend an evening in Vernon during the early 1900’s was going to see a concert, play, or moving picture. This mural depicts the first production by the Vernon Musical and Dramatic Society called The Geisha.

Creamery Truck H.W. Knight opened the Vernon Creamery in 1920. He already owned the building, so all he needed was the equipment for the production of butter. The truck was a common sight on the rural roads of Vernon.

Sovereign Lake In 1939, the City of Vernon donated a log cabin to a local cross country ski club on Vernon Lake. Pictured at the cabin are Carl Wylie and his wife Flora founders of the club. Vernon Lake was later renamed Sovereign Lake after good citizen and avid skier Bishop Art Sovereign. The ski area has now become a world class destination.

World Wars Vernon has had a long and proud military history. This extensive mural is almost 300 feet long and depicts Vernon’s efforts in both WWI and WWII. The mural shows specific battles, the various armed forces and unique imagery.

Our History


http://downtownvernon.com/murals/17-okanagan-indian-band/

http://downtownvernon.com/murals/16-cowboys/

http://downtownvernon.com/murals/19-geisha/

http://downtownvernon.com/murals/18-world-wars/

http://downtownvernon.com/murals/17-okanagan-indian-band/

http://downtownvernon.com/murals/16-cowboys/

http://downtownvernon.com/murals/19-geisha/

http://downtownvernon.com/murals/9-creamery-truck/

http://downtownvernon.com/murals/20-sovereign-lake/

http://downtownvernon.com/murals/18-world-wars/

Vernon’s Best Beaches Kaloya Regional Park – Kalamalka Lake Spend the day making sandcastles, playing with your kids at the playground or launch your boat for a day on the water.

Kin Beach – Okanagan Lake Pack up the family for a day at the beach. A grassy park, complete with jungle gym for the kiddoes, slopes to a warm beach and shallow swimming area.

Paddlewheel Park Beach - Okanagan Lake Sit beneath the shade of a swaying willow, or spread out on your blanket and watch the sailboats race by. Paddlewheel Park Beach is where warm summer memories are made.

Ellison Point Beach – Okanagan Lake Sand beaches gently bank down to western Canada’s only freshwater dive park in Otter Bay. Explore submerged relics, sunken artifacts, and vibrant underwater plant life.

Sandy Beach – Okanagan Lake Tucked into a quiet cove in Ellison Provincial Park, it’s where man’s best friend can frolic in the sand and water.

Golf Vernon The Golf Club at The Rise A traditional links and coastal mountain golf experience in the orchard-lined mountains of Vernon. The Rise is designed by Freddy (Boom Boom) Couples and is one of the most scenic courses in British Columbia. www.therise.ca

Hillview Golf Course Fast. Short. Challenging. However you define golfing one thing is certain, this 18-hole course has eight lakes and even more sand traps make this a target golf course unlike any other. www.hillviewgolf.ca

Predator Ridge Resort Predator Ridge is a veritable paradise with 36 Championship holes of golf waiting to be played. Life here includes a state-of-the-art fitness centre, indoor & outdoors pools and gourmet dining featuring fresh local ingredients. www.predatorridge.com

Vernon Golf & Country Club Challenging golfers for more than 100 years, playing the Vernon Golf & Country Club is a time-honored summer tradition. www.vernongolf.com

Whether you’re a local or a visitor, here for a day, a weekend, or the best time of your life, you’ll be amazed at what Vernon has to offer. If you’ve never ventured off Highway 97 when travelling through the North Okanagan, we invite you to make a turn in the right direction and visit our family-friendly community.

Vernon offers more than 100 lakes within a one-hour drive, world-class golf, mountain and wellness resorts, great beaches and trails, outstanding mountain biking, spectacular farmers’ markets three days a week, and family-friendly attractions and festivals.

Our Vernon


http://www.therise.ca/

http://www.hillviewgolf.ca/

http://www.predatorridge.com/

http://www.vernongolf.com/

Take a HikeEllison Provincial Park – a spider web of trails running in and out of the trees.Bobcat & Lookout Trails at Sparkling Hill Resort – sweeping views of grasslands, distant lakes and rolling mountains are your rewards on this 7 kilometre trail.

Rattlesnake Point – an easy walk with magnificent vistas of both ends of Kalamalka Lake. Plenty of benches along the way to stop and savour the view.

Swan Lake Nature Reserve Trail – wander through waving grasslands, surrounded by forested mountains and wide open sky.

Coldstream Valley Trails – hike any of the Grey Canal trails on their own, or combine all three for postcard-worthy views of the Coldstream and North Okanagan Valleys.

Turtle Mountain Trail – check out the views of Middleton Mountain, Swan Lake and Silver Star while watching raptors soar above.

Ellison Park– An easy hike for the whole family.

Sovereign Lake at Silver Star Provincial Park – experience the solitude of snowshoeing in the trees.

Lookout Trail at Kalamalka Lake Park – Take in the view of Cosens Valley from the top of the trail.

BX Falls Trail – An easy 3 kilometre walk to feel the cool spray of the waterfalls.

Family Friendly Family Field Trips Embark on a family field trip, and whether you point your compass toward O’Keefe Ranch, Davison Orchards or the Okanagan Science Centre, there are plenty of opportunities to disconnect from your everyday and reconnect with each other…roaming Davison Orchards on a vintage apple train, uncovering the mysteries of the universe at Okanagan Science Centre’s hands-on exhibits, or pretending you’re a pioneer for the day at O’Keefe Ranch’s summer day camps.

A Family Time Out Surrounded by water, it’s easy to enjoy a day at the beach in Vernon. And no matter whether you’re seeking a quiet fishing hole, a hidden cove for a family picnic or a beachside playground, Vernon is overflowing with options for a well-deserved family time out or you can avoid the sand and spend an exciting day at Atlantis Waterslides. Spread your beach blanket at Kin Beach, Paddlewheel Park or Ellison Provincial Park, three local favourites for families. You’ll find both beaches on Okanagan Lake, within a few minutes drive of Vernon’s downtown. Broad, sandy beaches gently sloping into the water, and a fully outfitted playground make Kin Beach a favourite for young families, while Ellison’s pebbled shoreline and underwater dive park (the only one in the Okanagan) draws kids of all ages to its tree-lined shores.

Family Fun in the Snow Family fun isn’t just a summer pursuit in Vernon – winter presents even more options to unwind and relax with the whole clan. Chill out at Silver Star Mountain Resort and discover just how much fun playing in the snow can be. Ski or snowboard snow-ghost lined glades, gather the kids for a family pick-up game of hockey, ski or snowshoe Sovereign Lake Nordic Centre, or experience our annual celebration in February, the Vernon Winter Carnival…it’s all warm family fun.

Our Vernon


Citizens of Vernon

CommunityDevelopment

Buildings and Inspections

Economic Development

Tourism

Planning

Environmental

Transportation Demand

Management

Corporate Services

Information Services

Legislative Services

Land Services

Communications/Grants

Bylaw and Parking

Community Policing Office

Safe Communities

EngineeringServices

Engineering Services

GIS Services

FinancialServices

Accounting

Procurement Services

Fiscal Services General

Collections to/from Others

Taxation

Grants

Public Transit

Fire Rescue Services

Fire Fighting

Fire Training Centre

Emergency Management

Human Resources

Human Resources

OccupationalHealth and

Safety

Operation Services

Public Works

Fleet Services

Facility Services

Sewer Utility Services

Storm

Parks

Water Utility Service

RCMP(Contracted

Services)

RCMP Detachment

RCMP Detention Centre

Recreation Services

Recreation Centre

Arenas

Program Outdoor Pools

Property Rentals

Mayor and Council

Chief Administrative Officer (CAO)

Organizational Structure



• Acting as collection authority for other taxing jurisdictions• Airport operation• Boulevard and other landscape maintenance• Building approval and inspection• Bylaw enforcement• Cemetery operation• Drainage system maintenance• Economic development• Emergency preparedness planning and co-ordination• Engineering services• Environmental protection services• Fire/Rescue protection• Garbage and yard recycling services• Legislative (adoption of bylaws; approval of development permits;

adoption of corporate policies and procedures)• Parking control and parkade operation• Parks maintenance and operation• Planning services• Policing• Public transit, including HandiDart operation• Recreation programs and facilities operation and maintenance• Safeguarding of assets• Sanitary sewer collection system operation, maintenance and

construction• Street lighting• Street, sidewalk, and lane maintenance, construction and

reconstruction• Tourism• Traffic signal operation• Water systems operation on behalf of the Regional District of North

Okanagan

Services Provided to Our Residents



SENIOR MANAGEMENT CONTACTS Will Pearce Chief Administrative Office [email protected] Kevin Bertles Director of Financial Services [email protected] Patti Bridal Director of Corporate Services [email protected] Reg Burgess RCMP, Officer In Charge Reg.burgess@rcmp-

Raeleen Manjak Director of Human Resources [email protected] Ed Stranks Acting Director of Engineering & GIS

[email protected]

Kim Flick Director of Community Development [email protected] Keith Green Fire Chief, Fire Rescue Services [email protected] Shirley Koenig Director of Operation Services [email protected] Doug Ross Director of Recreation Services [email protected]

Front row, from left

Rob Dickinson (Ed Stranks), Reg Burgess, Patti Bridal, Shirley Koenig, Keith Green, Kim Flick, Raeleen Manjak

Back row, from left

Kevin Bertles, Doug Ross, Will Pearce

Senior Management Team


mailto:[email protected]









The following revenue targets were adopted under the 2013-2017 Financial Plan and are shown with their actual results:

(in $1,000's) Accumulated Capital Capital Accumulated Capital Capital

Amortization, Reserves, Asset Deficit Amortization, Reserves, Asset Deficit Asset Beginning Beginning Beginning End End End Category of Year of Year of Year of Year of Year of Year

BUILDINGS $ 20,611 $ 5,084 $ 15,527 $ 22,055 $ 5,080 $ 16,975 VEHICLES 5,906 1,441 4,465 6,465 2,016 4,449

MISCELLANEOUS EQUIPMENT 959 - 959 992 11 981

INFORMATION TECHNOLOGY 2,726 368 2,358 1,830 379 1,451

TRANSPORTATION INFRASTRUCTURE 86,996 1,428 85,568 91,933 4,436 87,497

STORM SEWER INFRASTRUCTURE 19,225 160 19,065 20,148 160 19,988

SANITARY SEWER INFRASTRUCTURE 21,395 7,379 14,016 22,471 6,600 15,871

IRRIGATION WATER INFRASTRUCTURE 2,624 21 2,603 2,730 21 2,709

NATURAL GAS SYSTEM LEASE 7,950 273 7,677 8,673 273 8,400

$ 168,392 $ 16,154 $ 152,238 $ 177,297 $ 18,976 $ 158,321

Measure 2014 Target 2014 Actual Business to Residential Property Tax Rate Ratio 3.2 to 1 2.56 to 1 Taxation as a Proportion of Total Revenue 42.5% 34.84% Service Fees as a Proportion of Total Revenue 36.9% 22.98% Other Revenue as a Proportion of Total Revenue 19.6% 37.9% Specified Area Parcel Taxes as a Proportion of Total Revenue 1.0% 3.18% Taxation Levy for Infrastructure Projects 1.9% 1.9%

Revenue Policy Targets and Results 2014

Capital Asset Deficit 2014


Council’s Strategic Plan 2015 – 2018


Council’s Vision Summer 2018

At its strategic planning session on February 2, 2015, Council identified the following vision for the City of Vernon, as envisioned for the summer of 2018.

The City has taken a leadership role in economic development. Investment is happening in the Waterfront, with a new park and private development. Investment is happening in the Downtown: there are fewer vacant storefronts and a new office building is opening. There are new apartments under construction, and redevelopment in the surrounding neighbourhoods provides new family homes. More jobs in the technology sector, tourism and health care are providing more opportunities for young professionals and their families to move to Vernon.

Investments in parks and recreation provide supporting reasons for young families to move to Vernon. The new ice sheet at Kal Tire Place just opened, and a new multi use park is being planned for the adjacent Kin Race Track lands. The Rec Centre and Polson Park are both being revitalized, and the Civic Arena block is being transformed into a park. More biking and walking options include the newly opened portions of the Rail Trail from Lumby Junction to Kelowna.

The City has a strong and productive relationship with the Regional District of North Okanagan (RDNO) where issues of mutual concern are addressed to the benefit of all residents. This includes resolution of the Master Water Plan, including funding and equitable rates that are supported by the public. The future of both the Art Gallery and the Museum are determined, including locations and funding. Should Coldstream, Electoral Area B or C come forward and wish to explore the benefits and costs of amalgamation, the City of Vernon would agree to support a provincially funded study.

The City focuses on efficient, front line service delivery. Tax rates have been kept at or below inflation, as have municipal operating expenses. The City actively engages and consults with the community on new initiatives, and conducts business in a transparent manner.


Council’s Goals 2015 - 2018

Council has identified the following goals in order to achieve the vision. All of the following goals are equally important to Council. Progress reports will be regularly presented to Council for its consideration.

Facilitate Regional Collaboration Referendum to twin Kal Tire Place November 2015 Resolve specific funding and cost sharing arrangements with RDNO (including the Library, Transit, Fire Services and gateway signage)

December 2015

Establish a working group with the Okanagan Indian Band to develop a servicing plan for IR#6 (with grant funding)

June 2016

Develop a boundary extension and servicing plan for the Swan Lake Corridor to facilitate development and redevelopment

2016

Determine future locations of the Art Gallery and Museum, with consideration of a combined facility

2017

Review the Master Water Plan and associated DCC Bylaw, with due consideration for equitable rates for agricultural, residential and commercial users

2017

If Electoral Area B, Electoral Area C and/or Coldstream requests an amalgamation study, agree to support it

If required

Be a Leader in Economic Development Bring forward a resolution to increase the business tax exemption from $10,000 to $50,000 to SILGA/UBCM

March 2015

Develop and promote inventories of vacant commercial properties to reduce the downtown vacancy rate to 10% or less

December 2015

Engage realtors in the promotion of economic opportunities December 2015 Endorse and implement the Industrial Lands Action Plan June 2016 Support sustainable urban development by reducing off site costs and reviewing parking requirements for infill development

September 2016


Prioritize implementation of the Airport Master Plan once complete in 2016, including necessary capital improvements or upgrades

January 2017

Be a technology friendly and supportive community, and undertake initiatives to promote and support the technology sector

Annually

Cut red tape by ensuring we have a competitive development review process Annually Support sustainable neighbourhoods by implementing neighbourhood plans and the OCP

Annually

Prioritize capital projects in the Downtown Annually Work with community partners and the Affordable Housing Advisory Committee to create more affordable housing

Annually

Create a Vibrant Parks and Recreation System Find resolution to Kin Race Track issues December 2015 Update lake access plan, including implementation schedule and budget August 2016 Host 2017 BC Seniors Games (if awarded to Vernon) September 2017 Develop plan for Kin Park November 2017 Develop plan for Civic Arena Block Park once ice surface is removed (consider repurposing the Arena building)

December 2017

Renegotiate Recreation Agreement May 2018 Update draft Polson Park Plan and undertake improvements 2018 Develop plan for Lakeshore Park and undertake improvements 2018 New Aquatic Centre planning Begin in 2018 New Seniors Centre planning Begin in 2018 Purchase lakeshore properties for future park As available Remove existing encroachments in lake accesses As identified

Provide Effective Protective Services VFRS 125 Anniversary celebration and bell tower restoration project unveiling May 2016 Explore expansion of VFRS fee for service agreements May 2016 Facility improvements at Station #2 December 2016 Plan and finance new RCMP building (forecast, plan, funding, grants) 2017


Deliver Efficient, Effective and Proactive Municipal Services Develop public engagement protocols to increase public (and youth) engagement (webtools, surveys, social media, resident feedback, etc.)

December 2015

Develop a plan to expand sewer services in Okanagan Landing through the investment of $2 million per year for the next ten years

2016

Develop a strategy for use of legacy funds from the BC Gas/LILO Agreement 2017 Celebrate 125 Anniversary 2017 Operational budget not to rise faster than inflation (Canadian CPI, all goods in, August to August year over year)

Annually

Support the continued 1.9% infrastructure tax increase to support the Sustainable Infrastructure Plan (SIIP)

Annually

Focus investment and resources on the delivery of front line services Annually New FTE positions are to be for the delivery of services and accommodated within the organization’s overall budget increase of no more than the rate of inflation

As identified

Create a Safe, Efficient and Sustainable Transportation Network Update Master Transportation Plan including a review of truck and hazardous materials routes and a time frame to consider the option of a highway bypass

April 2015

Implement new strategy for bus stops and shelter maintenance July 2015 Amend bylaws to implement the Integrated Transportation Framework (ITF) December 2016 Support transit oriented and mixed use development As identified

Foster Community Development through Social Planning Work with agencies and senior governments to develop and maintain comprehensive, accessible and affordable childcare

September 2016

Continue to support the Social Planning Council in the provision of social planning services to the City, including programs and initiatives to address homelessness, childcare, attainable housing, food security and neigbourhood safety

Annually

Work with community groups and agencies to support youth and senior oriented initiatives

Annually

Actively engage youth in stewardship opportunities Annually Identify opportunities to include youth in consultation processes As needed


Deliverables

The following deliverables have been identified to meet Council’s goals. Progress reports will be regularly presented to Council for its consideration. The deliverables will be reviewed annually by Council.

Facilitate Regional Collaboration Establish a working group with the Okanagan Indian Band to develop a servicing plan for IR#6 (with grant funding)

June 2016

Participate in the review of Master Water Plan options with regional partners 2017 Develop a boundary extension and servicing plan for the Swan Lake Corridor with regional partners to facilitate development

2017

Commence GVW contract renegotiation January 31, 2016 as per the terms of the contract (contract expires January 31, 2018)

January 2018

Initiate Biosolids Management Plan in 2015 and recommend long term treatment of biosolids from Vernon and Kelowna as per the partnership agreement, to be negotiated prior to expiration of current agreement in 2018

2018

Explore additional regional partnerships in information technology As required

Be a Leader in Economic Development Pursue renewal of industrial Lands MOU February 2015 Develop and implement Wayfinding strategy phase one for the City Centre (parking directional signage)

April 2015

Develop marketing materials for the City Centre (printed brochure and online distribution)

May 2015

Report to Council with proposed approach to community branding June 2015 Report to Council identifying the proposed four year capital project list August 2015 In conjunction with the Downtown Vernon Association, create an inventory of available space in the downtown

September 2015

In conjunction with property owners, identify lands available for redevelopment in the downtown

September 2015


Undertake an inventory of technology companies and related resources in Vernon to be featured on the InvestVernon website

September 2015

Implement Wayfinding strategy phase two for the City Centre (amenities and key destinations)

September 2015

Report to Council with results of the Expression of Interest process for the rear portion of the Visitor Information Centre

September 2015

Consultation, technical review and development of draft Airport Master Plan September 2015 Undertake an inventory of underutilized industrial and commercial lands within the City of Vernon (vacant lands inventory has been completed)

November 2015

Create an inventory of available building space in the City of Vernon for large industrial or commercial clients

November 2015

Host annual seminar with real estate companies on promotional opportunities beyond commercial listing service

November 2015

Create business profiles of five technology companies to be featured on InvestVernon website

November 2015

Finalize standard operating procedures for all planning and development applications

December 2015

Report to Council with proposed parking in lieu strategy and Zoning Bylaw amendments

December 2015

Project design, tendering and administration of 2015 Capital program December 2015 Design capital projects for 2016 December 2015 In conjunction with the Downtown Vernon Association, create an online map of the downtown highlighting recent developments, capital projects and redevelopment opportunities

December 2015

Actively promote City owned properties to the development community 2015-2016 Explore possible LAS for the Waterfront (report to Council on results of preliminary consultation with property owners)

February 2016

Develop and adopt the 2016 – 2020 Tourism Strategy February 2016 Report to Council to review parking requirements in the City Centre March 2016 Report to Council to amend the Sign Bylaw to conform with City Centre Neighbourhood Plan

June 2016

Promote land and building inventory on the Invest Vernon website June 2016 Working with industry, government agencies, industry associations and service providers, explore opportunities for a technology incubator in Vernon

June 2016

Adoption of rezoning amendments by Council to bring non conforming Commonage properties into compliance with the Official Community Plan

June 2016


Adoption of Airport Master Plan August 2016 Adoption of an Integrated Community Sustainability Plan December 2016 Explore additional incentives to increase redevelopment in the City Centre 2016 Report on results of customer satisfaction survey for building and development Annually Through the Economic Development Advisory Committee's task force on Technology, continue to promote, facilitate and enhance Vernon's growing technology sector

Annually

Meet with a minimum of four major or emerging employers each year to discuss locating or expanding in the downtown

Annually

Target specific companies that may be interested in locating in Vernon Annually In conjunction with industry, identify and attend technology related trade shows and events

Annually

Create a Vibrant Parks and Recreation System Create policy and procedures framework to complete transition of recreation services to the City

May 2015

Complete administrative transition of Recreation Services from RDNO to the City of Vernon

June 2015

Submit bid for hosting 2017 BC Seniors Games June 2015 Complete public consultation and revise draft parks plan, as appropriate October 2015 Upgrade the Recreation Centre kitchen exhaust system and lighting, and replace the Aquatic Centre flooring and boards in the PV Arena

December 2015

Complete parks project list for the creation of the Parks DCC Bylaw April 2016 Begin contract negotiations prior to June 30, 2016 for sub regional parks and trails service agreement (contract expires December 31, 2016)

June 2016

Update lake access plan, including implementation schedule and associated budget

August 2016

Renovate Recreation Centre bridge, entrances and lobby September 2016 Develop a Recreation Services Master Plan for facilities and programming September 2016 Develop plan for Civic Arena Block Park once ice surface is removed (consider repurposing the Arena building)

December 2016

Update and adopt the Polson Park Master Plan March 2017 Develop plan for Kin Park (on the Kin Race Track lands) 2018 Develop a plan for Lakeshore Park 2018 Purchase lakeshore properties for future park As available Remove existing encroachments in lake accesses As identified


Provide Effective Protective Services Commission Station #3 (Predator Ridge) and begin operations March 2015 Complete overall Fire response policy once Station #3 is operational April 2015 Review VFRS Fleet replacement and reserve planning and order water tender April 2015 Update Emergency Plan operations, deployment and service delivery to align with new inter-municipal agreement

June 2015

Complete public consultation on the Community Wildfire Protection Plan (CWPP) and prepare amendments for the OCP, Rezoning and Fire Prevention Bylaws

June 2015

Inter-agency cooperative fuel modification projects with MOF and in alignment with CWPP recommendations

August 2015

Complete restructure of the RCMP ME Department 2015 Renew agreements for Vernon Volunteer Firefighters Association, IR #6 Fire Suppression (RDNO), Fire Investigation and Inspection for Lumby and Coldstream and Chlorine Ammonia Sulphur Dioxide for the Enderby water treatment plant, well and arena

2015

Complete update of the hazard risk vulnerability assessment and subsequent update of the emergency plan

June 2016

Renew Fire Training Centre Inter Municipal Bylaw agreement November 2016 Restructure Bylaw Compliance, Safe Communities and Community Policing into a Protective Services Department

2015 – 2016

Increase community safety and awareness programs through new Protective Services Department

2015 – Ongoing

Explore opportunities with the Justice Institute of BC for local educational partnerships, mentoring and internships

2016

Deliver specific programs for fire and fall safety to seniors at risk Annually Prepare for and complete bargaining of IAFF Collective Agreement As required

Deliver Efficient, Effective and Proactive Municipal Services Review and develop a new employee financial orientation training program March 2015 Complete feasibility analysis, initial project costs and preliminary design for OSB pre treatment facility, and tender for design build construction

April 2015 (tentative)

Submit 2015 Financial Plan final version to GFOA International, Distinguished Budget Presentation Award program(consider annually, subject to Council direction during the budget process)

June 2015


Construction of canopy for vehicles in Operations’ Yard June 2015 Develop preventative maintenance program for lift stations July 2015 Initiate/tender inflow and infiltration program study (Liquid Waste Master Plan) July 2015 Restructure Utilities to improve efficiencies and better align duties and responsibilities

July 2015

Implement a new model for bus stop/shelter maintenance and advertising July 2015 Implement Tempest Prospero for accounts receivable July 2015 Refine the budget development and review process August 2015 Prioritize high risk onsite septic areas and work with residents to initiate LAS projects (Liquid Waste Master Plan)

August 2015

Report to Council with proposed policy extending City sanitary sewer system into the unserviced areas of the City (Liquid Waste Master Plan)

August 2015

Submit 2014 Annual Report to the GFOA International report review program(consider annually, subject to Council direction during the budget process)

August 2015

Design, deliver and conclude a strategic capacity development program September 2015 Report to Council with proposed amendments for the Soil Removal and Deposition Bylaw

September 2015

Develop a strategic infrastructure plan for buildings, including lifecycle replacement strategy and budget implications

October 2015

Initiate/tender DCC stormwater cost share analysis (Liquid Waste Master Plan) November 2015 Sani dump reconstruction and relocation on the Civic Arena block November 2015 Report to Council with proposed amendments for the Erosion and Sediment Control Bylaw

November 2015

Report to Council with proposed amendments for the Subdivision and Development Servicing Bylaw

December 2015

Expand electronic payment capability to vendors December 2015 Develop public engagement protocols, including identification of new resources December 2015 Update City of Vernon Mission Statement December 2015 Continue to research and implement energy reduction initiatives December 2015 Develop an employee fall protection program December 2015 Review financial system software for future reporting and functionality December 2015 Continue development of financial variance reporting for division directors December 2015 Resolve issues impeding full implementation of electronic billing of utility bills December 2015 Complete the Internal Certificate of Recognition or COR Audit to maintain our standing and access to annual rebates

December 2015


Redesign City of Vernon website 2015 – 2016 Electronic Records Management System conversion of all City records 2015 – 2016 Increase resources to grants program to increase City’s access to grants 2015 – 2016 Identify corporate goals and initiatives regarding economic, environmental and social responsibility and prepare Corporate Sustainability Plan

June 2016

Update internal and external communications plan 2015 – Ongoing Consult, design and implement an exempt performance management program December 2016 Implement a bargained environment performance management program December 2017 Prepare for and complete bargaining prior to expiration of current Collective Agreement in December 2018

December 2018

Consult, design and implement a succession plan December 2018 Gain Employer of Choice designation 2018 Continue with detailed infrastructure assessment and develop replacement priority criteria based on ancillary benefit, risk assessment and risk management

Annually

Create a Safe, Efficient and Sustainable Transportation Network Report to Council with updated Master Transportation Plan and related OCP amendments

April 2015

Report to Council with proposed amendments to the Traffic Bylaw August 2015 Information report to Council about the staff travel plan December 2015 Complete DCC Bylaw review of transportation projects March 2016 Amend bylaws to implement the Integrated Transportation Framework (ITF) December 2016

Foster Community Development through Social Planning Submit resolution to SILGA and UBCM regarding the need to develop and maintain comprehensive, accessible and affordable childcare

September 2016

Where possible, support community groups and agencies in the provision of youth and senior oriented initiatives

Annually

Ensure City events, such as sustainability and TDM events, actively engage youth Annually Consider the needs of youth and seniors when prioritizing sidewalk and multi use trail connections

Annually

Support the Social Planning Council in the provision of social planning services to the City, including programs and initiatives to address homelessness, childcare, attainable housing, food security and neigbourhood safety

As needed

Specifically identify opportunities to include youth in consultation processes As needed


3 Year Strategic Plan Deliverables Status

Sound Management and Prudent Budget Direction

Core Service Review – initiate September 2012, consultant’s report complete March 2013. Initial recommendations December 2012. Implement April – September 2013.

Core Services Review COMPLETE. Administration report submitted April 2013. Council direction by resolution received in response to 113 recommendations and 19 position papers. All direction being implemented.

VFRS – 4 Core Review Position Papers addressed the recommendations and resulted in several resolutions to be implemented over the next 18 months.

VFRS – Business Analysis and marketing plan strategy to In Camera Council on September 23, 2013 re VFRS Dispatch Centre (Core Review resolution). COMPLETE

Community Development - Review of Community Development Division through the Core Service Review. COMPLETE. The Council resolutions of May 16, 2013 regarding reorganization of the Community Development Division are currently being implemented. This included changes to the organization of the Division’s budget structure, with implementation in the 2014 Budget. COMPLETE.

Conclude 3 Year Business Plan (September 2012), aligning core department work plans to Council’s key objectives (December 2012).

Council Strategic Priorities 2012-2014 inclusive COMPLETE. Department work plans in accordance with Council key objectives. Director performance reviews conducted on basis of Strategic Priorities progress/completion.

A Safe, Vibrant, Family Community

Conclude parks and recreation regional agreements to establish clear responsibility (ownership, operating and maintenance responsibility, budget responsibility) for local and sub-regional parks, local and sub-regional recreation facilities (through 2013, implement 2014).

Sub-regional Parks Agreement COMPLETE; implemented January 1, 2014.

Recreation Services Agreement COMPLETE; implemented January 1, 2014.

In cooperation with RDNO determine future use of Kin Race Track (through 2013).

Council approved general adjournment November 2013. Anticipate Equestrian Society to approach Province for operational funds. Transfer of RDNO lands to City of Vernon recommended to GVAC and approved. The City will NOT assume liability for RDNO actions prior to land title transfer date.

2014 Accompl ishments A d m i n i s t r a t i v e S e r v i c e s




Subject to Council authorization, lead cooperative regional housing needs assessment (2012).

COMPLETE. A housing needs assessment was undertaken as part of the OCP Review 2013 and presented to Council at its Regular Meeting of September 23, 2013. The Regional Growth Management Advisory Committee (GRMAC) has deferred the decision to proceed with a regional housing needs assessment until the discussion on 2014 RGS priority actions. An application to UBCM’s Age-Friendly Communities grant program was unsuccessful and the Regional Growth Strategy budget did not include this project. There is a possibility that staff (i.e. RGS Coordinator) may undertake this project with in-house resources.

Determine future role of City in O’Keefe Ranch and long term plans for Art Gallery, Museum and RCMP facilities.

ONGOING Numerous major projects (Art Gallery, Museum) under consideration by RDNO, & may be subject to referendum.

The City is currently participating in the Culture Master Plan process being undertaken by GVAC/RDNO. While the process is intended to examine all cultural aspects of the community, it is also expected to make recommendations regarding the Museum and Art Gallery.

Increase interdepartmental co-operation regarding Bylaw enforcement conducted for regulatory bylaws (implement December 2012, then ongoing).

COMPLETE and ongoing. Office consolidation, CSB, completed in 2012. Gained efficiencies from the consolidation of many City Divisions into one building. Development of Standard Operating Procedures for tasks that involve more than one department underway.

Staff from Planning, Building and Bylaws communicate regularly regarding specific complaints, as well as work jointly in the review and development of bylaws and policies (for example, the departments are working jointly on the implementation of comprehensive changes to the secondary suite regulations, as directed by Council, as well as the development of regulations pertaining to the new Marijuana for Medical Purposes Regulation (MMPR), adopted by Council at its Regular Meeting of August 11, 2014.

Focus on Divisions only utilizing Bylaws for enforcement of their bylaws when compliance is not accomplished.

Business Friendly, Globally Competitive

Implementation of the industrial lands MOU with the goal to renew in 2013.

COMPLETE. Council endorsed a renewal of the Industrial Lands MOU at its Regular Meeting of September 9, 2013. Staff will continue with ongoing implementation and pursue renewal in the fall of 2014.

Complete final report for the regional employment lands inventory, 2013.

COMPLETE. Report received by Council at its Regular Meeting of January 27, 2014.

Report to Council on Development Services Review and Implementation Strategy (February 2013).

COMPLETE. Council has received a number of memos and reports from Community Development and Engineering regarding comprehensive changes to the development permitting process over the last two years. Staff continue to work on process improvements and monitor emerging best practices.

2013 Tourism Marketing Plan (target January 2013).

COMPLETE. The marketing plan was developed in conjunction with the marketing sub-committee of the Tourism Advisory Committee and adopted by Council at its Regular meeting of January 28, 2013. The 2014 Marketing Plan was adopted by Council at its Regular Meeting of January 13, 2014.

2014 Accompl ishments C o m m u n i t y D e v e l o p m e n t S e r v i c e s


3 Year Strategic Plan Deliverables Status Assess tourism function, recommend improvements/alternatives including business partnerships and strategic advertising (target October 2012).

COMPLETE. Results of assessment provided to CAO and Council for consideration. Current focus of implementation is on maximizing the benefits associated with the centralization of visitor facilities in order to redirect funding and staffing to other tourism priorities.

Identify key business leverage opportunities, create focused teams/partnerships and pursue business development opportunities. Update Economic Development Strategy to reflect these initiatives (target November 2013, implementation immediate).

COMPLETE. The updated Economic Development Action Plan was adopted by Council at its Regular Meeting of December 9, 2013.

ONGOING. Staff work with stakeholders and pursue business development opportunities on an ongoing basis. The new Economic Development Planner position was filled in late 2014, which will further enhance the City’s ability to support economic development initiatives.

Continued implementation of City Centre Neighbourhood Plan (ongoing, subject to Council approved funding, where required).

ONGOING. The current focus is on promotion of the City Centre as a place to invest and on way finding signage. Council endorsed the creation and implementation of parking signage in the City Centre at its Regular Meeting of August 11, 2014.

Amend applicable bylaws and policies to promote redevelopment and property improvements in target redevelopment and employment areas, reduce "red tape", and improve Corporate (interdepartmental) services (ongoing).

ONGOING Zoning Bylaw #5000 and Subdivision and Servicing Bylaw #3843 amendments to reduce costs on infill small lot residential development and to reduce off site costs have been adopted or are in progress. Efforts underway in conjunction with Engineering and Real Estate to develop a Local Service Area to address significant infrastructure requirements in the Waterfront Neighbourhood Plan area. At its Regular Meeting of August 11, 2014, Council supported the renewal of the Revitalization Tax Exemption Bylaw for the City Centre and Waterfront Neighbourhood Centre Plan.

Wise Planning

OCP review – 2013. Initiate fall 2012. To include “Integrated Community Sustainability Plan” to integrate economic, environmental and social priorities as they apply to community systems such as energy, water, transportation and infrastructure. Other specific areas, subject to Council direction, will include long term plan for Okanagan Landing, explicit goals for the Commonage, updating Transportation Plan.

COMPLETE. The OCP was adopted at the Regular Meeting of November 10, 2014 and has been forwarded to RDNO for endorsement of the RCS. The ICSP will be undertaken following adoption of the OCP, in 2015.

Following completion of OCP Review (target September 2013), undertake Airport Master Plan (subject to funding availability for runway extension study), Parks Master Plan; DDC Bylaw for Parks, and defers the Okanagan Landing Neighbourhood Plan (as per Council Resolution of September 26, 2013).

The OCP continues to be the Corporation’s guiding document. Administration may not act in contravention to the plan. Administration has assisted numerous development proposals over the past four years to be successful within the context of OCP 2008. The City’s record for implementation is exemplary and well regarded throughout the local government community.

UNDERWAY Council approved funding for the runway extension study in the 2013 budget. Planning, Operations, Engineering and Real Estate are undertaking the review of the Airport Master Plan in 2014. Council endorsed a report proposing a process for the plan at its Regular Meeting of October 27, 2014.

UNDERWAY The Parks Master Plan process has been undertaken and the draft plan was presented to Council at its Regular Meeting of November 10, 2014. The Parks DCC Bylaw will be pursued in 2015 following adoption of the Parks Master Plan.

Completion of the Foothills Neighbourhood Planning process (target December 2012)

COMPLETE. The Foothills Neighbourhood Plan was adopted on October 15, 2013.

2014 Accompl ishments C o m m u n i t y D e v e l o p m e n t S e r v i c e s C o n t i n u e d



Implement Standard Operating Procedures to ensure Community Development/Engineering and GIS Services/Operations function as a team

ONGOING Engineering / Community Development - The move to “one stop shopping” has been underway for the past two years and has included a number of initiatives completed to date (use of project managers, ESR Review by Engineering and Planning senior staff, comprehensive review of all standard operating procedures, review of development approval process by outside consultant and consolidation of all departments involved in the development process into the new Community Services building). The trial process for the comprehensive redesigned application process was completed in 2013 and the new process implemented in 2014.

As a check to these new initiatives, the Managers of the two divisions meet bi-weekly to discuss any issues such that they are resolved and methods to avoid them again in the future are explored. The reliance on the Economic Development Officer to mediate some issues has also been very effective.

Engineering and GIS Services/Community Development/Operations departments to report on application of Hillside Guidelines (target fall 2012).

COMPLETE. Amendments to Zoning Bylaw and Official Community Plan adopted by Council at its Regular Meeting of June 24, 2013.

2014 Accompl ishments C o m m u n i t y D e v e l o p m e n t S e r v i c e s C o n t i n u e d




Complete and implement Corporate Communications Strategy to inform residents, taxpayers and businesses in a timely manner of City activities and direction (June 2013).

COMPLETE and on going.


Focus Protective Services Division on public safety and public order through public education, presence at major events, and enforcement.

Ongoing and enhancing through 2014/2015. Bylaw Division actively involved in many programs being offered in the City. Provided a presentation to the Block Watch Captains’ meetings, attended YAA Festival, Relay for Life, Grad, etc. Participants in the training of the new “Safety Ambassadors” Encouraging the Bylaw Compliance Division to work with Safe Communities and Community Policing on common areas of education and compliance towards safety initiatives.

Working with the Parking Advisory Committee, Tourism Advisory Committee and Downtown Vernon Association, establish sound, client centered bylaw enforcement protocols (December 2012).

COMPLETE. The Parking Advisory Committee, the DVA, Traffic Technician and Manager, Bylaw Compliance developed a Parking and Traffic Enforcement Policy, which provided guidelines for compliance criteria, timeframes for officer observation of offences, options for compliance/enforcement, exemptions, etc. In addition, provided a detailed synopsis of all regulatory Bylaws in relation to parking. This policy was adopted by Council on October 15, 2013.

Increase public education initiatives in regards to City Bylaws in order to reduce complaints and increase compliance. Through Corporate Communications, embed public messaging schedule consistent with known seasonal issues (April 2013).

COMPLETE and ongoing. Bylaw Division has provided many seasonal educational press releases in regards to City Bylaw regulations. These messages form part of the Communications Strategy adopted in 2014.

Nuisance smoke complaints are handled by Bylaw. VFRS and Bylaw continue to work together towards public cooperation on safe and considerate outdoor burning.

Focus staff training within Protective Services on Customer Service and conflict resolution to increase positive interactions (May 2013).

COMPLETE, and on-going. In April and May, the Protective Services – Bylaw Department undertook two (2) one-day training seminars with Tracey Lorensen, Paragon Strategic Services on Communications. Customer Service, Conflict Resolution, Service Excellence – all tailored to the Bylaw Services Department.

5 members attended a workshop in Penticton on “Getting in Compliance” which focused on gaining compliance before enforcement proceeded with.

New ticketing program in which “warnings” are issued has been implemented. Ability to determine if the offence is repetitive or new. Provides an education opportunity with the warning ticket.


COMPLETE and ongoing. Office consolidation, CSB, completed 2012. Gained efficiencies from the consolidation of many City Divisions into one building.


Development of Standard Operating Procedures for tasks that involve more than one department that outline tasks and responsible departments underway.

2014 Accompl ishments C o r p o r a t e S e r v i c e s


3 Year Strategic Plan Deliverables Status Staff from Planning, Building and Bylaws communicate regularly regarding specific complaints, as well as work jointly in the review and development of bylaws and policies (for example, the departments are working jointly on the implementation of comprehensive changes to the secondary suite regulations, as directed by Council, as well as the development of draft regulations pertaining to the new Marijuana for Medical Purposes Regulation (MMPR), adopted by Council at its Regular Meeting of August 11, 2014.

Increase public safety/security education to the community through the Safe Communities Unit (May 2013).

COMPLETE and on-going. Unit attended and hosted many educational opportunities such as Fraud Prevention, Home Security, Anti-Bullying, Drug Awareness, etc. as well as participants in expos, seminars and community events such as Seniors Expo, Boat Watch

Increase direct community involvement in Safe Communities Unit programs and services. By measure: more volunteers involved in greater range of safety/security programs (e.g. multi-family crime reduction – Summer 2012).

COMPLETE and on-going. Many new volunteers recruited in 2013/2014 for citizens on patrol. New programs and initiatives – block watch, Crime Free Multi-Housing, WITTS program in schools, etc.

Enhance delivery and commitment to business crime prevention programs (May 2013).

Some programs delivered in 2013 included Merchants Against Money Laundering, Presentations at Chamber of Commerce, Community Futures and visits to merchants in the downtown.


Review, redevelop Corporate Brand. Implement consistently, present a fresh attractive image to investors, employers, target populations (subject to budget authorization, target December 2013).

COMPLETE. Council adopted the Communications Strategy in Spring of 2014 which included the corporate branding initiative and the Communications Coordinator is actively working with staff to align all communications to be consistent with the branding strategy.

2014 Accompl ishments C o r p o r a t e S e r v i c e s C o n t i n u e d




Implement Transit Plan (joint development with BC Transit) to optimize system efficiencies and use (optimal utilization of existing busses, efficient placement of additional transit hours when available). Initiate 25 year transit future plan (target Winter 2013/2014 completion).

5 Year Service Review Plan COMPLETE in 2011. Long term 25 year future plan initiated October 2012. The 25 year Transit Future Plan is COMPLETE and was adopted by Council on March 23, 2014. A fare review to ensure a cost effective Transit future remains in progress. During this process there will be a need to involve a Transportation Specialist to ensure the plan effectively services our City.


COMPLETE and ongoing. Office consolidation, CSB, completed 2012. Gained efficiencies from the consolidation of many City Divisions into one building.


Development of Standard Operating Procedures for tasks that involve more than one department that outline tasks and responsible departments underway.

Staff from Planning, Building and Bylaws communicate regularly regarding specific complaints, as well as work jointly in the review and development of bylaws and policies (for example, the departments are working jointly on the implementation of comprehensive changes to the secondary suite regulations, as directed by Council, as well as the development of draft regulations pertaining to the new Marijuana for Medical Purposes Regulation (MMPR), adopted by Council at its Regular Meeting of August 11, 2014.


Amend applicable bylaws and policies to promote redevelopment and property improvements in target redevelopment and employment areas, reduce "red tape", and improve Corporate (interdepartmental) services (ongoing).

Zoning Bylaw #5000 and Subdivision and Servicing Bylaw #3843 amendments to reduce costs on infill small lot residential development and to reduce off site costs have been adopted or are in progress. Efforts underway in conjunction with Engineering and Real Estate to develop a Local Service Area to address significant infrastructure requirements in the Waterfront Neighbourhood Plan area. At its Regular Meeting of August 11, 2014, Council supported the renewal of the Revitalization Tax Exemption Bylaw for the City Centre and Waterfront Neighbourhood Centre Plan.

Regional Leadership through Value Added Partnerships

Conclude Water Management Plan (target submission to RDNO and respective Council’s early 2013). Implement on Council/Board direction.

Ongoing. Project managed by RDNO.

Coordination with RDNO, Coldstream to improve joint project management (initiated June 2012).

City of Vernon staff endeavor to advise/involve partner jurisdictions on ongoing basis. City of Vernon staff continue to coordinate with RDNO staff regarding Capital Programs and scheduled road maintenance. Coordination for 2014 Capital Program planning is occurring concurrently. Defining Capital Works responsibilities – ongoing. Board to finalize protocols – ongoing.

2014 Accompl ishments E n g i n e e r i n g / G I S S e r v i c e s



Complete and implement Liquid Waste Management Plan. Will contribute to protection of source waters (potable water system) and recreational areas from contamination.

Potable water is the purview of the Regional District, however with completion of the Liquid Waste Management Plan (LWMP) the City will have identified means to protect source waters and recreational areas from contaminants. Implementation will be a priority due to the support that has occurred through the LWMP process and as legislated through the LWMP. Currently with the Province for approval.

Regional transit stakeholder meetings to build cooperative approach and solve real time issues in transit service delivery (ongoing).

Cost sharing agreement to UBCO service COMPLETE. Ongoing cost sharing of custom transit service. Finance - North Okanagan Transit Future Plan COMPLETE. Regional Fare Review under development by the same working group. Draft final report for Council review in winter 2014/2015.

Regular meetings of Senior Management Team members with Regional and Coldstream counterparts to build and maintain constructive relationships (CAO, CFO, Engineering, Community Development) – ongoing. Assume lead to establish North Okanagan CFO network.

City of Vernon Engineering staff continue to coordinate with RDNO staff regarding Capital Programs and scheduled road maintenance. Coordination for 2014 Capital Program planning is occurring concurrently.

Manage our “House”

Subject to grant/budget approval complete Asset Management Strategy, clearly define municipal infrastructure commitments, prepare reserve management strategy (target March 2014).

The City of Vernon received Gas Tax Funding in the amount of $336,000 for creation of the Sustainable Infrastructure Investment Plan (SIIP). The SIIP identifies the life cycle costs of our infrastructure, the existing and potential revenues available to meet those financial demands, and looks at levels of service to ensure the two are balanced and sustainable. The Asset Management Investment Plan has identified replacement costs and the Asset Management Revenue Plan has identified the revenue that is available to fund these cost pressures. The next phases of the SIIP are focusing on balancing cost control and rate increases. Currently the SIIP is focusing on the City of Vernon’s largest asset being our transportation network. The Integrated Transportation Framework (ITF) aims to create a sustainable network of roads that is both affordable and functional. The ITF was adopted by Council September 2014.

COMPLETE. The Stormwater Utility review will commence after the ITF is completed.

Engineering/Operations departments conclude road system condition analysis, complete priority based recapitalization plan (target December 2012).

The road condition assessment and priority list provides vital information to the SIIP – COMPLETE.

Operations – Ongoing; updating as new information becomes available.

2014 Accompl ishments E n g i n e e r i n g / G I S S e r v i c e s C o n t i n u e d



Wise Planning


UNDERWAY. Draft OCP received Third Reading at the Regular Meeting of September 8, 2014 and has been forwarded to RDNO for endorsement of the RCS. The ICSP will be undertaken following adoption of the OCP.

Through the promotion and support of the TDM initiatives and measures, updated design standards, and innovative construction methods the Engineering Division is ensuring we maintain a triple bottom line balance on all projects. The review and selection of materials, consideration of life cycle costs and operations and maintenance costs continue to support this initiative.

VFRS is involved in the OCP review with regards to water, transportation planning and the development of a new wildfire interface plan and associated policies.

Community Wildfire Protection Plan (CWPP) recommendations to be considered and incorporated into wildfire interface planning. VFRS – All Chief Officers will participate in water and transportation OCP planning sessions, with intention to address operational requirements for water supply and access, especially outside the downtown core.

Engineering - As part of the 2013 OCP Review, Engineering is currently updating the Transportation Master Plan (TMP) as well as integrating the findings and recommendation of the SIIP into both the OCP and TMP.

Implement Standard Operating Procedures to ensure Community Development/Engineering and GIS Services/Operations function as a team

Engineering / Community Development - The move to “one stop shopping” has been underway for the past two years and has included a number of initiatives completed to date (use of project managers, ESR Review by Engineering and Planning senior staff, comprehensive review of all standard operating procedures, review of development approval process by outside consultant and consolidation of all departments involved in the development process into the new Community Services building). The trial process for the comprehensive redesigned application process was completed in 2013 and the new process will be implemented in 2014.

Since this issue was raised last year the Departments have completed Standard Operating Procedures to ensure we work as a team and utilize the systems we have to full effect. As a check to this new initiative the Managers of the two divisions meet bi-weekly to discuss any issues such that they are resolved and methods to avoid them again in the future are explored. The reliance on the Economic Development Officer to mediate some issues has also been very effective.

Engineering changes to the Engineering Services Reports that are issued by Engineering and a refinement to the Engineering involvement in the Building Permit process.

Engineering and GIS Services/Community Development/Operations departments to report on application of Hillside Guidelines (target fall 2012).

COMPLETE. Amendments to Zoning Bylaw and Official Community Plan adopted by Council at its Regular Meeting of June 24, 2013.

2014 Accompl ishments E n g i n e e r i n g / G I S S e r v i c e s C o n t i n u e d




Develop multi-year (2013-2014) operating budget, (target completion March 2013), compatible with Government Finance Officers Distinguished Budget Presentation Award quality standards.

COMPLETE 2013 Budget adopted February 25, 2013. 2014 Budget adopted February 11, 2014.

Budget features included; Multi Year (2) Operating Budgets Multi Year (2) Capital Budget Revised Department Summary Reports.

2013 and 2014 Financial Plan were submitted to GFOA award program and received the award. 2015 Financial Plan continues progress on improving the quality of reporting.

Continue initiatives to expand on-line financial services (business licenses, home owner grants, access to tax and utility account information). Subject to Council budget authorization, implement e-billing for utilities and taxes (target 2013). Revised Target 2014/2015

COMPLETE - Service Requests included with the 2013-2014 Budget were not granted in 2013 Financial Plan but a revised proposal for ebilling utilities was approved in the 2014 Financial Plan, and went live to customers August 1, 2014.


Implement Transit Plan (joint development with BC Transit) to optimize system efficiencies and use (optimal utilization of existing busses, efficient placement of additional transit hours when available). Initiate 25 year transit future plan (target Winter 2013/2014 completion).

5 Year Service Review Plan COMPLETE in 2011. Long term 25 year future plan initiated October 2012. The 25 year Transit Future Plan is COMPLETE and was adopted by Council on March 23, 2014. A fare review to ensure a cost effective Transit future remains in progress.

Work towards 2008 Transportation Plan recommendation (based on 2007 service review) of one new bus per year for 10 years to supply an effective fundamental service ( 1/2 hour service on all routes ) and 20 minute express bus service ( east-west and North-South)(subject to local and BC Transit budget approvals).

Change requests to be included with 2013-2014 budget subject to Council approval 2006/7 hours 10,059 2007/8 hours 14,504 2011/12 hours 24,737 2012/13 hours 25,978 2007 bus count increased by 3 (Used) 2008 bus count increased by 1 (Used) Further requests for increases in conventional busses have not been met by BC Transit. The existing fleet of conventional busses in Vernon are due for replacement in 2016. 2013 - 2038 Transit Future Plan has been approved by Council March 23, 2014. The Plan sets out the 25 year service changes, sets out a new operating system of a hub and spoke system moving away from the current pulse system, the resultant infrastructure and fleet requirements could lead to large changes every few years, rather than every year.

Regional Leadership through Value Added Partnerships

Regional transit stakeholder meetings to build cooperative approach and solve real time issues in transit service delivery (ongoing).

•

Cost sharing agreement to UBCO service COMPLETE. Ongoing cost sharing of custom transit service.

Finance - North Okanagan Transit Future Plan COMPLETE. Regional Fare Review under development by the same working group. Draft final report for Council review in winter 2014/2015.

2014 Accompl ishments F i n a n c i a l S e r v i c e s




Regular contact is being maintained with RDNO and Coldstream.

CFO’s meet once per month.

VFRS initiative to manage the Regional Fire Training centre effective January 1, 2013. To date, strong support and operating within a much reduced budget.

Finance - North Okanagan Treasurers Group formed in fall 2012- Initial meeting held October 25, 2012. Fall 2014 meeting was held Dec 3, 2014.

Operations meets regularly with RDNO on Parks and Water issues.

Manage our “House”

Inter-departmental (Engineering, Operations, Finance) evaluation of current large scale projects to highlight impact on infrastructure deficit (target 2013).

Illustration of a typical project presented to Council in 2012. Recapitalization reserve strategy proposed in 2013-2014 Budget. Multi -year recapitalization funding strategy adopted with 2013 Financial Plan.

2014 Accompl ishments F i n a n c i a l S e r v i c e s C o n t i n u e d




Conclude collective agreement negotiations/extensions by MOU (target 2012 CUPE, 2013 IAFF).

ONGOING: IAFF negotiations to begin October 2014. Preparations for negotiations are underway.

COMPLETE: VFRS/IAFF retroactive calculations have been approved and retroactive pay received in September 2013. (Retroactive pay up to Dec. 31, 2012)

ONGOING: CUPE negotiations are continuing. Collective Agreement expired December 2013.

Promote health and safe work practices, adherence with WorkSafe BC (ongoing).

COMPLETE: November 2012 to December 2012 an internal audit of the City’s safety programs was undertaken and was submitted to the BC Municipal Safety Association by Dec. 14, 2012. Health and Safety policy reviewed at the December 2012 Directors’ meetings. Policy signed by all Directors.

COMPLETE: The internal audit is complete and the COV has passed this audit. The City must continue to successfully pass upcoming safety audits to continue to be eligible for and to receive COR monies (approximately $30,000 per year).

ONGOING: VFRS adheres to WorkSafe on an ongoing basis. Combining firefighting forces under a single command structure will further ensure WorkSafe compliance.

COMPLETE: HR prepared for an additional 2013 audit of the City’s Return to Work Program. The City passed the audit and received additional COR monies 2014.

COMPLETE: External audit undertaken in September 2013 to include both the Safety Management System (SMS) the Stay at Work/Return to Work (SAW/RTW) program. Audit outcomes available in late October, early November. Successful completion of the audit to result in 15% return on WSBC insurance premiums.

COMPLETE and ONGOING: Recently completed Excavation Safety and Working with Asbestos Pipe.

COMPLETE and ONGOING: Excavation Safe work Practices Program rolled out to Utilities, Utilities Water, Public Works.

The City has provided 837 hours of safety training throughout the organization.

ONGOING: Operations priority to ensure safe workplace and practices.

COMPLETE and ONGOING: Workplace Inspection program promoted to all areas and regular updates sent to SMT for review.

Review retirement status of employees, prepare succession plans for key positions (2013).

ONGOING: Human Resources is currently surveying other municipalities in preparation for upcoming vacancies in senior supervisory roles. The review of key positions is underway. Succession plans for key positions will be developed by December 2015.

2014 Accompl ishments F i r e R e s c u e S e r v i c e s


COMPLETE and ONGOING: September 2013 a review of key positions eligible for retirement in next 5 years.

VFRS succession plan underway with Fire Officer Training.

VFRS – Fire Officer I and Fire Officer II certification completions ensure the roster is prepared for the future. All four shifts currently have a Captain + 2 Firefighters qualified for Acting Captain as required. Due to the demographic of the department, VFRS is currently well positioned for succession. VFRS: In 2014 prepare for eventual vacancies in Deputy Chief positions and review job descriptions.


Continue to develop and promote application of CityWorks to improve service response times, efficiencies and support an asset management strategy.

VFRS provides dispatching after hours in support of the CityWorks. VFRS – dispatch services to Operations ensures 24/7/365 notification for response to public works concerns after hours. VFRS: Dispatching for Bylaw and Community Policing (work alone) initiated in 2014. From January 1, 2013 to July 30, 2014, VFRS has dispatched 426 incidents internally including public works after hours calls, utility after hours calls, bylaw complaints, bylaw staff checks, IS staff call outs and Citizens on Patrol man checks. Operations – ongoing. 2013 Budget includes expansion of CityWorks platform. CityWorks Preventative Maintenance Program completed in Water, VWRC and Building Services. Airport and Fleet Services using other software for PM Programs. Service Request Module used extensively in Operations to generate work orders. No further expansion planned for 2014.

Complete implementation of Preventative Maintenance program for all significant physical assets (target 2014).

PM program in place for VFRS apparatus in accordance with industry guidelines. VFRS – COMPLETE including Station 2 apparatus.

Operations – ongoing. CityWorks Preventative Maintenance Program COMPLETE in Water, VWRC and Building Services. Airport and Fleet Services using other software for PM Programs.

Improve efficiencies and reduce fleet operating costs and carbon footprint through installation of GPS in all City vehicles. Educate staff and establish clear policies for operations (target December 2013).

Operations – COMPLETE. City of Vernon Vehicle Use Policy amended. GPS installed.

Mobile CAD installed in some VFRS fire apparatus. Change request budget 2013 submitted for remaining apparatus.

Operational efficiencies reviewed on an ongoing basis. VFRS – 2013 Change Request was approved and installations are underway. Mobile CAD installations nearing completion. Operations – implementation completed January 2013. Data indicates a 25% decrease in fuel consumption in first three months.

Initiate shared economy of scale regionally for fire equipment and apparatus volume purchasing (2013).

VFRS management of the fire training centre will support initiatives of regional purchases. VFRS Chief Officers are members of the RDNO Chiefs’ Association and attend regular meetings and workshops on shared opportunities. VFRS – ongoing, RDNO Chiefs meetings are scheduled quarterly and informal opportunities arise through the FTC function. VFRS: ONGOING throughout 2014. RDNO Chief’s Association roles and terms of reference to be reviewed to include additional emergency service (BCAS, SAR, Forestry). Terms of Reference / Constitution for ad hoc group undergoing final review by regional participants.

2014 Accompl ishments F i r e R e s c u e S e r v i c e s C o n t i n u e d


Assume responsibility for Regional Fire Training Centre (2012) and deliver a realistic, achievable budget while maintaining the integrity and level of training at the Centre (in conjunction with Okanagan College).

COMPLETE. VFRS assumed responsibility for the FTC on January 1, 2013 and budget is COMPLETE. Logistical coordination with Okanagan College underway. All support documentation nearing completion. VFRS – 2014 FTC Budget was approved by the FTC Policy Board for all participants and Inter-Municipal Bylaw in place for operation. Scheduling, communication and event management procedures are in place. VFRS – meetings of the FTC Policy Board and Operations Committee to be scheduled fall 2014, for 2015 budget preparation, review of procedures and pre-planning for 2015 use estimates. Discussions with Okanagan College are positive and continuing towards course coordination. VFRS: Budget approved for 2014 and Facility Improvements Plan underway on 5 year schedule.


Integrate all volunteer firefighters into one team operating under a single agreement (Vernon Volunteer Firefighters Association); apply comprehensive training program including training on all apparatus, implement Department Operating Guidelines and Standard Operating Procedures (effective February 2013).

COMPLETE


Operate Okanagan Landing Fire Hall as a volunteer service (ongoing).

VFRS – COMPLETE Reported to Council on deployment model update June 10, 2013.

Conclude land negotiations, design and construction contractor selection for Predator Ridge Volunteer Fire Hall (2012). Construct and commission fire hall (2013).

VFRS – design, RFQ, contractor selection COMPLETE.

Land Lease being finalized.

Predator Ridge fire hall is under construction. Anticipate completion fall of 2014. Deployment considerations under review for implementation into VFRS composite model.

Potential to provide service “out of area” to RDNO interested properties being considered on a fee for service basis.

Petition process undertaken by RDNO for fire protection in the Kalamalka Lakeview area was successful, draft Fee for Service Agreement undergoing legal review in anticipation of January 1, 2015 effective date.

Develop credibility, confidence and trust, externally and internally, with Vernon Fire Rescue Services by working as one united service with a single shared vision and clear goals (2013).

VFRS – COMPLETE and ongoing, 13 former OKL Firefighters accepted invitation to join VVFA to date.

Complete fire rescue dispatch upgrades and new communication protocol (March 2013).

COMPLETE, with change request for additional mobile CAD submitted (2013).

Complete an update of fire rescue services operational guidelines and policy manual reflecting all organizational changes to structure, human resources, and deployment (June 2013).

COMPLETE VFRS – OG’s updated and implemented

Deployment model effective February 1, 2013 VFRS – COMPLETE and reported to Council June 10, 2013.

Continually improve the abilities of Department firefighters, career and volunteer, to protect the lives and property of residents and businesses by implementing a progressive, comprehensive training program (ongoing).

Ongoing with management of the FTC and integration of the firefighting forces



2013 Training Plan completed Dec. 31, 2012 VFRS – Ongoing Training for career and paid-per-call firefighters occurring in accordance with Training Plan

2015 Training Plan to be completed by mid December 2014, with consideration of budget and FTC usage.

Review Fire Underwriters policies and ratings for residential and commercial insurance with the objective of facilitating reduced insurance rates based on service initiatives and improvements (June 2013).

To be undertaken August 2014 VFRS – in progress.

VFRS – preliminary research in progress. Will form basis of some aspects of overall Response Policy being developed as per Core Review resolution. Response Policy due for Council’s consideration fall 2014.

Renew regional service agreements for all chlorine/ammonia/sulphur dioxide responses (2012).

VFRS – COMPLETE


Reduce the risk of fire within the community by supplying a high level of expertise in fire inspections, community fire education, safety programs, and conduct thorough fire investigations to forecast and prevent future fires of similar nature.

New mapping tool developed by IS division Sept. 2012 and utilized for tracking geographical patterns VFRS – Map tool implemented and review ongoing

VFRS – Smoke alarm program launched in fall of 2012 @ Big Chief Mobile Home Park and Pleasant Valley Mobile Home Park. Sponsorship received for 2013 targeting additional areas in the community. Public education and installs completed by career and paid-per-call firefighters at no cost to residents. Sponsorship received to continue smoke alarm program on ongoing basis. Mandated inspections completed annually VFRS – as at June 10 inspection targets are on track for 2013.

VFRS as at September 19, 2013 inspection targets on track for year- end completion.

2014 inspections on target for completion at year end for City of Vernon as well as fee for service Lumby inspections.

Increase public education initiatives in regards to City Bylaws in order to reduce complaints and increase compliance. Through Corporate Communications, embed public messaging schedule consistent with known seasonal issues (April 2013).

VFRS – ONGOING throughout 2014. VFRS participates in Fire Prevention Bylaw compliance, specifically in regards to outdoor burning and nuisance smoke and compliance to seasonal considerations and provincial legislation. Fire Prevention Bylaw under review fall 2014 in conjunction with recommendations in Community Wildfire Protection Plan. Ad hoc working group of several impacted divisions formed in order to align recommendations across all divisions especially planning, building and fire. Meetings are scheduled and anticipate presenting bylaw changes for Council’s consideration in October.

COMPLETE and ongoing. Bylaw Division has provided many seasonal educational press releases in regards to City Bylaw regulations. These messages form part of the Communications Strategy adopted in 2014.

VFRS – weekly meetings with COV Communication Officer are scheduled to ensure seasonal considerations and public compliance requirements are well publicized. The 2013 Burn Season (Feb 28-April 30) did not generate significant issues. Fees and Charges Bylaw updates authorized Burn Permit Fee of $75 February 2013. 19 Permits were purchased in 2013.

Nuisance smoke complaints are handled by Bylaw. VFRS and Bylaw continue to work together towards public cooperation on safe and considerate outdoor burning.



Focus staff training within Protective Services on Customer Service and conflict resolution to increase positive interactions (May 2013).

COMPLETE, and on-going. In April and May, the Protective Services – Bylaw Department undertook two (2) one-day training seminars with Tracey Lorensen, Paragon Strategic Services on Communications. Customer Service, Conflict Resolution, Service Excellence – all tailored to the Bylaw Services Department.

5 members attended a workshop in Penticton on “Getting in Compliance” which focused on gaining compliance before enforcement proceeded with.

New ticketing program in which “warnings” are issued has been implemented. Ability to determine if the offence is repetitive or new. Provides an education opportunity with the warning ticket.

3 Year Strategic Plan Deliverables Status Regional Leadership through Value Added Partnerships



CFO’s meet once per month.

VFRS initiative to manage the Regional Fire Training centre effective January 1, 2013. To date, strong support and operating within a much reduced budget.

VFRS initiative to continue regional hazmat service agreements authorized by Council November 2012. All regional agreements now in place.

Service Agreements for fire inspections and investigations for Lumby and Coldstream in place.

City of Vernon Engineering staff continue to coordinate with RDNO staff regarding Capital Programs and scheduled road maintenance. Coordination for 2014 Capital Program planning is occurring concurrently.

Finance - North Okanagan Treasurers Group formed in fall 2012- Initial meeting held October 25, 2012. Second meeting scheduled June 20, 2013.

Operations meets regularly with RDNO on Parks and Water issues.

Wise Planning


UNDERWAY. Draft OCP received Third Reading at the Regular Meeting of September 8, 2014 and has been forwarded to RDNO for endorsement of the RCS. The ICSP will be undertaken following adoption of the OCP.

Through the promotion and support of the TDM initiatives and measures, updated design standards, and innovative construction methods the Engineering Division is ensuring we maintain a triple bottom line balance on all projects. The review and selection of materials, consideration of life cycle costs and operations and maintenance costs continue to support this initiative.





Create a contemporary, efficient, learning organization delivering services and programs as directed by Council consistent with established “best practices” (target – following lead of Core Service Review).

i. Establish a comprehensive training/development program (target – create and initiate implementation December 2013).

COMPLETE: Phase 1: Management and Supervisory Training: HR developed a priority training program to support supervisors and managers in the Corporation. This program covered six topics including Leaders’ role in supporting and managing performance; dealing with conflict; strong communication for leaders; leading a respectful team; customer service; leading a unionized environment.

The comprehensive Corporate Training and Development program is currently being developed. This program will identify corporate priorities and obligations including statutory requirements and other obligatory training. Completion date June 2015.

ONGOING: Program development is continuing, staff currently reviewing and compiling related policies/procedures to simplify the process.

ii. Review remuneration policy for exemptpersonnel to include private sector comparable.

COMPLETE - The independent Compensation Consultant met with Council on two occasions, March and May 2013, and submitted a final report for Council’s review, June 10, 2013. This report recommends a Compensation Philosophy for exempt staff.

Council has received the report for information.

iii. Conclude collective agreementnegotiations/extensions by MOU (target 2012 CUPE, 2013 IAFF).

ONGOING: IAFF negotiations to begin October 2014. Preparations for negotiations are underway.

COMPLETE: VFRS/IAFF retroactive calculations have been approved and retroactive pay received in September 2013. (Retroactive pay up to Dec. 31, 2012)

COMPLETE: CUPE negotiations are continuing. Collective Agreement expired December 2013.

iv. Develop and implement recruitmentand retention strategies to support evolving workplace and employment market.

COMPLETE: November 2012 to December 2012 an internal audit of the City’s safety programs was undertaken and was submitted to the BC Municipal Safety Association by Dec. 14, 2012. Health and Safety policy reviewed at the December 2012 Directors’ meetings. Policy signed by all Directors.

COMPLETE: The internal audit is complete and the COV has passed this audit. The City must continue to successfully pass upcoming safety audits to continue to be eligible for and to receive Certificate of Recognition (COR) monies (approximately $30,000 per year).

COMPLETE and ONGOING: VFRS adheres to WorkSafe on an ongoing basis. Combining firefighting forces under a single command structure will further ensure WorkSafe BC (WSBC) compliance.

COMPLETE: HR prepared for an additional 2013 audit of the City’s Return to Work Program. The City passed the audit and received additional COR monies 2014.

2014 Accompl ishments H u m a n R e s o u r c e s S e r v i c e s

COMPLETE: External audit undertaken in September 2013 to include both the Safety Management System (SMS) the Stay at Work/Return to Work (SAW/RTW) program. Audit outcomes available in late October, early November. Successful completion of the audit to result in 15% return on WSBC insurance premiums. City of Vernon | 2014 Annual Report

45







vii. Review retirement status ofemployees, prepare succession plans for key positions (2013).

ONGOING: Human Resources is currently surveying other municipalities in preparation for upcoming vacancies in senior supervisory roles. The review of key positions is underway. Succession plans for key positions will be developed by December 2015.

COMPLETE and ONGOING: September 2013 a review of key positions eligible for retirement in next 5 years.

VFRS succession plan underway with Fire Officer Training.

VFRS – Fire Officer I and Fire Officer II certification completions ensure the roster is prepared for the future. All four shifts currently have a Captain + 2 Firefighters qualified for Acting Captain as required. Due to the demographic of the department, VFRS is currently well positioned for succession.

VFRS: In 2014 prepare for eventual vacancies in Deputy Chief positions and review job descriptions.

2014 Accompl ishments H u m a n R e s o u r c e s S e r v i c e s C o n t i n u e d




Promote health and safe work practices, adherence with WorkSafe BC (ongoing).






Continue to develop and promote application of CityWorks to improve service response times, efficiencies and support an asset management strategy.

VFRS – dispatch services to Operations ensures 24/7/365 notification for response to public works concerns after hours.

Operations – ongoing. 2013 Budget includes expansion of CityWorks platform.

CityWorks Preventative Maintenance Program completed in Water, VWRC and Building Services. Airport and Fleet Services using other software for PM Programs. Service Request Module used extensively in Operations to generate work orders. No further expansion planned for 2014.

Complete implementation of Preventative Maintenance program for all significant physical assets (target 2014).

PM program in place for VFRS apparatus in accordance with industry guidelines. VFRS – COMPLETE including Station 2 apparatus.

Operations – ongoing. CityWorks Preventative Maintenance Program COMPLETE in Water, VWRC and Building Services. Airport and Fleet Services using other software for PM Programs.

Improve efficiencies and reduce fleet operating costs and carbon footprint through installation of GPS in all City vehicles. Educate staff and establish clear policies for operations (target December 2013).

Operations – COMPLETE. City of Vernon Vehicle Use Policy amended. GPS installed.

Mobile CAD installed in some VFRS fire apparatus. Change request budget 2013 submitted for remaining apparatus.

Operational efficiencies reviewed on an ongoing basis. VFRS – 2013 Change Request was approved and installations are underway.

Mobile CAD installations nearing completion.

Operations – implementation completed January 2013. Data indicates a 25% decrease in fuel consumption in first three months.


Conclude parks and recreation regional agreements to establish clear responsibility (ownership, operating and maintenance responsibility, budget responsibility) for local and sub-regional parks, local and sub-regional recreation facilities (through 2013, implement 2014).

Sub-regional Parks Agreement COMPLETE; implemented January 1, 2014.

2014 Accompl ishments O p e r a t i o n S e r v i c e s


3 Year Strategic Plan Deliverables Status Regional Leadership through Value Added Partnerships

Conclude parks and recreation services realignment with RDNO, Coldstream (target implementation 2014).

Operations to maintain and operate all City of Vernon local parks and all Sub-regional parks maintenance and operation excepting Electoral Area parks.

Conclude GVW agreement, ensure smooth transition of works and transfer of staff. Establish communications protocols to ensure safe, consistent potable water provision (target March 2013).

Staff transfer and deletion of maintenance and operation of the supply and treatment facilities by the City of Vernon. COMPLETE. GVW Operation and Maintenance Agreement COMPLETE.

Numerous implementation details being adjusted (eg. Engineering responsibilities, rates and fees, fire hydrants, etc.) Currently waiting for RDNO response regarding capital projects fees within City limits and fire hydrants. Regular meetings between Engineering and RDNO staff to deal with transition projects initiated prior to agreement being in place on complete conversion of standard documents and forms to reflect the change in responsibilities.

Transition COMPLETE. Operations works with RDNO to ensure service levels and public safety are maintained. Defining Capital Works responsibilities – ongoing. Board to finalize protocols – ongoing.



3 Year Strategic Plan Deliverables Status Manage our “House”

Engineering/Operations departments conclude road system condition analysis, complete priority based recapitalization plan (target December 2012).

The road condition assessment and priority list provides vital information to the SIIP – COMPLETE.

Operations – Ongoing; updating as new information becomes available.

Ongoing updates to match contemporary road/infrastructure design standards and incorporate innovative construction methods. Includes review of materials selection and lifecycle costing.

On going

Monitor and review contemporary (new) technologies in road maintenance to improve service and efficiencies (asphalt recycling, pre-wetting, life-cycle scrutiny) – ongoing.

On going

Core Service Review’s suggestion of using beet juice as an anti-icing alternative was not applied due to a warmer winter for 2013/2014. This anti-icing alternative will be reviewed for 2014/2015 winter season. Other technologies reviewed on an on-going basis.

Examine policy and comparative capital and operating costs of boulevard landscaping versus carriage way widths.

In progress. Review to be completed by December 2014. Concepts included in Strategic Infrastructure Investment Plan. Policies to be brought forward for Council’s review fall 2014

2014 Accompl ishments O p e r a t i o n S e r v i c e s C o n t i n u e d




Complete and implement annual RCMP Strategic Plan (developed through consultative process with designated councillor(s), partner agency and public input including annual public planning session) – annual submission.

COMPLETE. Annual RCMP Strategic Plan completed by RCMP fiscal and planning year April 1, 2013 to March 31, 2014 and April 1, 2014 to March 31, 2015. Council has made local priorities clear and RCMP Detachment has included same.

Deliver quarterly RCMP reports to Council in open public meeting.

COMPLETE

Complete, implement, measure targets and report quarterly through RCMP Annual Performance Plan (annual).

Annual Performance Plan on track for completion as part of Strategic Plan for 2013 and 2014 mentioned above. Update: Tracking and quarterly reporting is in place.

RCMP priorities (2012) – crime reduction, road safety, communication (each reported in detail under separate cover).

Reported on quarterly, on track and successful results to date. In 2013 Vernon RCMP reported a 2-3 month significant reversal in their normal downward trend for crime statistics, but later in 2013 were back to beating the National trend. Update: Significant set back in last quarter (mid 2014) with a series of arsons and a large jump in property crimes. All efforts being made to solve arsons while maintaining focus on targeted policing.

2014 Accompl ishments R C M P




In cooperation with RDNO prepare plans to decommission Civic Arena (through 2013 – implementation on Council direction).

Underway - Civic Arena Engineering Assessment Report; commissioned by the RDNO and contracted to Bruce Carscadden Architects was completed in March 2014. The GVAC and the RDNO passed resolutions to decommission the Civic Arena as an ice facility and to consider a replacement sheet of ice in the community. Enabling bylaws before the Province for approval. As at September 16, 2014 this was DENIED. As of December 4, 2014, the Province DENIED approval of the governance structure and enabling bylaws. An appeal is currently before the Minister.

In cooperation with RDNO prepare plans to twin Kal Tire Place (subject to 2013 budget authorization).

Underway – Vernon Civic Arena Replacement Feasibility Study; commissioned by the GVAC and RDNO and contracted to MQN Architects was completed in June 2014. The Study identified and recommended the twinning of Kal Tire Place to the North as the preferred option to replace the Civic Arena. The GVAC and the RDNO both voted unanimously to go to referendum in November 2014 in conjunction with the municipal elections for the borrowing of $13,000,000 to twin Kal Tire Place to the north. As of September 16, 2014, the Province DENIED approval of the governance structure and enabling bylaws. As of December 4, 2014, the Province DENIED approval of the governance structure and enabling bylaws. An appeal is currently before the Minister.

Select facility upgrades (many supported in whole or part by grants) to include:

i. Update entrances to Recreation Centre to improve accessibilityand energy efficiency

COMPLETE - The office at the Recreation Centre has now been renovated and includes disabled accessible counters.

Underway – Neil Jaud and DisStefano Architecture have been awarded the contract to design an updated accessible entrance and lobby and possibly a second floor to the Vernon Recreation Centre. The renovation will be put forward as a proposed capital project for 2015.

Underway – Plans are in place to update the west entry doors to the Recreation Centre. A grant application with the New Horizons project is pending to help pay for the project.

ii. Install dedicated tennis practice wall

COMPLETE - Two wooden practice walls have been installed at Polson Park by the Parks Department. A staff report from Recreation Services calls for a concrete practice wall to be constructed in conjunction with the next tennis court(s) that are developed. Costs prohibit the construction of a concrete wall at an existing facility at this time.

iii. Exterior lighting and signage – Lakers (2013 – subject to budgetapproval)

COMPLETE - Exterior lighting and signage installed October 2012 ahead of schedule

iv. Storage building and function area – Lakers

COMPLETE – Through a grant from the Ministry of Community Sport and Cultural Development the storage building was completed on October of 2014.

v. Additional overflow parking -Lakers

For future consideration. Will need to work in conjunction with Planning, Engineering and Operations.

vi. Improved flooring – Lakers (2012)

COMPLETE

vii. Play apparatus – Lakers (2012) COMPLETE

2014 Accompl ishments R e c r e a t i o n S e r v i c e s



viii. Play apparatus – Recreation Centre (2012)

COMPLETE - The playground project was completed July 2013.

ix. Fitness gym expansion – Recreation Centre (2012)

COMPLETE

x. Aquatic Centre disabled lift chair(2012)

COMPLETE – Through a grant from the Ministry of Community Sport and Cultural Development the disabled lift installation was completed in October of 2014.


Awards and Recognition

Training Officer, Captain Chris Kulak, was the 2014 recipient of the Governor General’s Caring Canadian Award. (left)

Raeleen Manjak, Human Resources Director was awarded the 2014 Local

Government Management Association (LGMA)

Professional Award for Innovation.

The City of Vernon received Recertification for the Safety Management System (SMS) Certificate of Recognition (COR) and Stay at Work/Return to Work (SAW/RTW) COR.

The City of Vernon was named one of the winning communities of the Open for Business Awards at the Union of

British Columbia Municipalities (UBCM) annual conference (right)

Gary Lefebvre, the aquatic supervisor for City of Vernon Recreation Services, is being recognized by the Lifesaving Society of BC & Yukon on March 29 in Vancouver for his role in rescuing three canoeists on Kalamalka Lake last summer. (right)

The Financial Services Division

received the 2014 Canadian

Award for Financial

Reporting.



Finance Committee Council Representative: Mayor Sawatzky Catherine Lord Bob Spiers Alternates: All Council Members

Greater Vernon Advisory Committee Director: Mayor Sawatzky Director: Bob Spiers Director: Juliette Cunningham Alternate: Catherine Lord Alternate: Mary Jo O’Keefe

North Okanagan Regional District Director: Mayor Sawatzky Director: Catherine Lord Director: Juliette Cunningham Director: Mary Jo O'Keefe Alternate: Bob Spiers Alternate: Brian Quiring

Okanagan Basin Water Board Appointments to this Committee are by recommendation – Board Chair will make appointment from the members on the Board. Council Representative: Juliette Cunningham Alternate: Mary Jo O'Keefe

Tourism Advisory Committee Council Representative: Catherine Lord Alternate: Mary Jo O'Keefe

Transportation Advisory Committee Council Representative: Brian Quiring Alternate: Mary Jo O’Keefe

External Council Appointments: Arts Council of North Okanagan Brian Quiring Alternate: Mary Jo O’Keefe

Canada Day Committee Catherine Lord Chamber of Commerce Liaison Catherine Lord Downtown Vernon Association Brian Quiring

Drought Response Team Catherine Lord Alternate: Mary Jo O'Keefe

Funtastic Sports Society Liaison Brian Quiring

Kelowna Airport Advisory Committee Mary Jo O'Keefe

Library – North Okanagan Regional Library Catherine Lord Alternate: Mary Jo O'Keefe

Liquid Waste Management Plan Public Advisory Committee Juliette Cunningham Alternate: Mary Jo O'Keefe

Municipal Insurance Association Mayor Sawatzky Alternate: Catherine Lord

North Okanagan Early Childhood Development Coalition – Children’s Charter Committee Juliette Cunningham

North Okanagan Regional Advisory Committee (OK College) Brian Quiring Alternate: Juliette Cunningham

O’Keefe Ranch and Historical Society Mary Jo O’Keefe

OKIB/First Nations Liaison Catherine Lord

Regional Growth Management Committee Councillor Lord Alternate: Mary Jo O’Keefe

Regional Agricultural Advisory Committee Mayor Sawatzky

Ribbons of Green Trail Committee Catherine Lord

Vernon Safe Communities Unit Mary Jo O'Keefe

Vernon Winter Carnival Liaison vacant

Committees and Boards



DBA Name Folio Civic Address Total Exemption

Churches and Houses of Worship Alexis Park Church 05560.000 3906 35A St $ 1,248 All Saints Anglican 00093.000 3205 27 St 2,473 Christian Reformed Church of Vernon 05480.000 3605 12 St 1,026 Church of God of Prophecy 06464.000 4300 Bella Vista Rd 286 Emmanuel Fellowship Baptist 05287.003 3412 15 Ave 2,193 Essentialist Church of Christ 02651.000 2001 45 Ave 657 Faith Baptist Church 01975.000 3910 27A St 2,752 Faith Baptist Church 02007.000 3909 28 St 521 First Baptist Church 02997.000 1406 32 Ave 1,412 German Church of God 02264.007 4312 25 St 1,004 Jesus Christ of Later Day Saints 03709.001 1506 35 St 974 Knox Presbyterian Church 00866.000 3701 32 Ave 1,200 Living World Lutheran Church 07357.550 6525 Okanagan Landing Rd 1,177 New Apostolic Church 02565.020 4203 Pleasant Valley Rd 555 NO Sikh Cultural Society 03714.025 3800 Commonage Cres 263 Okanagan Assembly Ctr for Jehovah 05287.002 1424 Mission Rd 5,815 Our Lady of Peace 04092.000 3016 37 St 639 Peace Lutheran Congregation 06029.001 1204 30 Ave 1,702 Salvation Army Community Church 00844.005 3303 32 Ave 2,819 Slavic Christians of Evangelic 01913.110 2306 40 Ave 640 St. James Roman Catholic Church 00517.000 2607 27 St 1,990 St. Josephants Ukrainian Catholic 02546.000 2210 40 Ave 942 Trinity United Church 04158.100 3300 Alexis Park Dr 4,944 Ukrainian Greek Orthodox Church 01920.010 4105 27 St 1,698 Vernon Alliance Church 02245.005 4301 27 St 1,799 Vernon Alliance Church 02249.000 4305 27 St 742 VERNON Alliance Church 02253.000 2601 43 Ave 2,404 Vernon Christadelphian 06099.020 19-2200 40 St 1,062 Vernon Christian Fellowship 02402.000 4507 29 St 1,683 Vernon Christian Fellowship 04451.002 4506 29 St 1,320 Vernon Church of Christ 02534.007 4107 Pleasant Valley Road 342 Vernon Family Church 03820.005 3508 25 Ave 3,545 Vernon Full Gospel Tabernacle 07401.340 5871 Okanagan Landing Road 1,337 Vernon Gospel Chapel 02563.015 4106 Pleasant Valley Rd 959 Vernon Japanese Cultural Society 07433.200 4895 Bella Vista Rd 825 Vernon Muslin Association 03725.000 3414 17 Ave 680 Educational Institution PV Christian Academy 02590.001 1802A-1802 45 Ave 10,085 PV Christian Academy 02590.001 1802A-1802 45 Ave 179 St James School 00502.000 2700 28 Ave 7,951 Social Services Abbeyfield House 03907.001 3511 27 Ave 2,999 All Saints Anglican 00093.000 3205 27 St 845 Canadian Mental Health Association 00090.000 3305 27 St 1,149 Canadian Mental Health Association 01445.000 3100 28 Ave 14,758 Canadian Mental Health Association 03384.000 3405 Okanagan Ave 1,156 Canadian Mental Health Association 03821.006 3605 24 Ave 1,804

Permissive Tax Exemptions


DBA Name Folio Civic Address Total Exemption First Nations Friendship Centre 01353.000 2902 29 Ave 2,924 First Nations Friendship Centre 01355.000 2904 29 Ave 3,142 Good Samaritan Canada 04484.005 4904 20 St 21,811 Good Samaritan Canada 04484.010 4900 20 St 12,524 John Howard Society 03840.100 2307 43 St 4,583 Kindale Seaton Ctr 06133.020 1340 Polson Drive 4,865 Literacy and Youth Initiatives 01850.002 3104 37 Ave 2,524 North Okanagan Community Life Society 02357.005 2400 46 Ave 8,359 North Okanagan Community Life Society 02534.071 1307 40 Ave 861 North Okanagan Community Life Society 02563.010 4102 Pleasant Valley Road 1,258 North Okanagan Neurological Association 01205.000 2802 34 St 26,583 NO Youth and Family Services 00963.000 3100 32 Ave 6,065 NO Youth and Family Services 01921.000 4107 27 St 898 NO Youth and Family Services 01922.000 4109 27 St 898 OK Comm – Columbus Court 04048.018 3003 Gateby Place 9,259 People Place 01552.105 3402 27 Ave 22,124 People Place 01552.110 3400 27 Ave 4,210 Salvation Army Thrift Shop 01382.000 3102 29 Ave 4,422 Schubert Centre Society 04048.040 3505 30 Ave 12,684 Trinity United – Camp Hurlburt 07801.200 9657 Eastside Road 5,820 Upper Room Mission 01538.000 3405 27 Ave 1,635 Upper Room Mission 01539.000 3403 27 Ave 6,971 V&D Hospice Society 03856.001 3506 27 Ave 4,288 VDACL - 26 ST Group home 00060.000 3307 26 St 1,397 VDACL - 3601 36A St Group Home 04159.021 3601 36A St 1,000 VDACL - 39 ST Group Home 03959.000 2803 39 St 1,207 VDACL - 4240 Alexis Park Drive 03925.000 3601 27 Ave 2,997 VDACL – Venture Training 04230.100 4240 Alexis Park Drive 6,097 VERNON Native House Project 03805.008 4305 19 Ave 14,088 Vernon Resthome 03917.000 2808 35 St 6,210 Women’s Transition House 00570.001 2603 26 St 3,604 Women’s Transition House 02464.000 3502 19 St 2,563 Cultural Powerhouse Theatrical Society 01826.010 2901 35 Ave 4,745 Vernon Music School 02869.000 1705 32 Ave 3,682 Vernon Music School - Coach 02868.000 1705 32 Ave 2,716 Educational Allan Brooks Nature Centre 05289.004 250 Allan Brooks Way 2,002 Allan Brooks Nature Centre 05289.004 250 Allan Brooks Way 1,309 Okanagan Science Centre 00635.000 2704 HWY 6 7,536 Recreational OK Landing Community Association 07815.000 7813-7811 Okanagan Landing Rd 3,929 OK Landing Community Association 07815.000 7813-7811 Okanagan Landing Rd 13,244 Mixed and Unique Army, Navy & Air force Veterans 02366.003 2500 46 Ave 1,836 B&G, Curling, Halina Clubs 04135.010 3700 33 St 31,959 B&G, CURLING & HALINA CLUBS 04135.010 3700 33 St 11,877 NORD Heronry 04487.047 107-2200 53 Ave 104 NORD Heronry 04487.048 108-2200 53 Ave 104

Permissive Tax Exemptions | Continued


DBA Name Folio Civic Address Total Exemption NORD Heronry 04487.049 109-2200 53 Ave 104 Scouts & St Johns Ambulance 02676.002 1905-1901 47 Ave 4,333 Scouts & St Johns Ambulance 590 Sunnyvale Rest home Society 02255.007 4306 25 St 337 Sunnyvale Rest home Society 02255.009 4308 25 St 234 Sunnyvale Rest home Society 02255.015 4304 25 St 1,549 Vernon and Area Pro Life Society 01067.000 3102 31 Ave 1,707 Vernon Pensioners - McCullough 01196.001 3400 Coldstream Ave 6,780 Vernon Pensioners - McCullough 01196.001 3400 Coldstream Ave 1,355 New 2012 Salvation army – Thrift/Coffee 04490.010 1-5400 24 ST 13,222 V&D Community Land Trust Society 03859.000 3502 27 Ave 13,606 New 2013 John Howard Society – Bill’s Place 01941.002 2504 43 Ave 857 NO Community Life Society 07090.036 5813 Richfield Place 479

$ 434,620

Business Revitalization Tax Exemptions 0821153 BC Ltd 01072.011 3126 31 Avenue 1,571 0821153 BC Ltd 01072.012 3126 31 Avenue 1,865 0821153 BC Ltd 01072.013 3126 31 Avenue 462 0821153 BC Ltd 01072.014 3126 31 Avenue 3,721 0821153 BC Ltd 01072.015 3126 31 Avenue 3,586 0821153 BC Ltd 01072.016 3126 31 Avenue 3,645 0821153 BC Ltd 01072.017 3126 31 Avenue 3,771 0944125 BC Ltd 02207.000 4101 32 Street 8,609 0976818 BC Ltd 02038.005 4012 27 Street 84 Ortho Terra Holdings Ltd 02036.011 1 - 4010 27 Street 3,175 Ortho Terra Holdings Ltd 02036.012 2 - 4010 27 Street 1,201 Ortho Terra Holdings Ltd 02036.013 3 - 4010 27 Street 3,175 Rex Corvelay Inc 01408.000 2801 32 Street 188

$ 35,053

Permissive Tax Exemptions | Continued


NAME OFFICE 2014 REMUNERATION EXPENSES* TOTAL

Sawatzky, Robert Mayor $ 61,888 $ 4,467 $ 66,355

Mund, Akbal Mayor 5,309 40 5,349

Anderson, Scott Councillor 1,734 - 1,734

Cunningham, Juliette Councillor 22,710 2,501 25,211

Lord, Catherine Councillor 21,902 1,055 22,957

O'Keefe, Mary Jo Councillor 20,513 643 21,156

Quiring, Brian Councillor 21,628 65 21,693

Spiers, Robert Councillor 21,751 - 21,751

Nahal, Dalvir Councillor 1,668 - 1,668 Nicol, Patrick Councillor 1,575 - 1,575

Total $ 180,678 $ 8,771 $ 189,449

*Expenses are net of tax

Council Remuneration and Expenses


57

EMPLOYEE NAME DIVISION GROSS EARNINGS

EXPENSES (NET OF TAX) TOTAL

Adkins, Ian J Operation Services $ 87,653 $ 3,602 $ 91,256

Bandy, Brett Corporate Services 95,540 1,157 96,698

Barker, Cindy Financial Services 91,961 1,250 93,212

Beals, Gary Operation Services 82,518 - 82,518

Bedard, Richard R Engineering/GIS Services 77,417 1,052 78,469

Bertles, Kevin Financial Services 125,614 6,773 132,387

Blair, M. Jack Fire Rescue Services 112,427 3,129 115,556

Blakely, Susan E Corporate Services 76,571 1,446 78,017

Bond, Brent H Fire Rescue Services 112,891 275 113,166

Bradley, Jodie D Fire Rescue Services 75,072 - 75,072

Bridal, Patricia Corporate Services 118,627 5,375 124,003

Cecchini, Darren Fire Rescue Services 115,614 289 115,903

Chirkoff, Paul Operation Services 80,754 1,079 81,833

Clarke, Colin A Fire Rescue Services 94,507 - 94,507

Connor, Bryce P Operation Services 87,762 105 87,867

Corbett, Cleopatra Engineering/GIS Services 87,581 3,176 90,757

Coughlin, James P Recreation Services 82,035 112 82,147

Cover, Dave Operation Services 82,021 61 82,081

Crawford, Bradley Fire Rescue Services 90,649 - 90,649

Cucheran, Robert Fire Rescue Services 98,587 11 98,598

Currie, Ian Operation Services 90,007 560 90,568

Dickinson, Robert Engineering/GIS Services 128,204 2,607 130,810

Donker, Barend Corporate Services 76,951 1,093 78,043

Doorman, John W Fire Rescue Services 83,253 11 83,263

Dowhaniuk, Mark Engineering/GIS Services 92,819 2,990 95,809

Enns, Lyle Operation Services 81,167 61 81,227

Flick, Kimberly S Community Development Services 129,198 1,186 130,383

Foster, Anne Marie Corporate Services 87,897 30 87,927

Fredin, Clayton C Human Resources Services 91,727 5,434 97,162

Gawne, Kevin M Operation Services 81,141 694 81,835

Gilroy, Chad Fire Rescue Services 87,882 - 87,882

Gobbett, Carl Operation Services 85,478 - 85,478

Grant, James A Corporate Services 88,564 798 89,363

Green, Keith R Fire Rescue Services 133,271 5,145 138,416

Haverty, David Operation Services 75,327 - 75,327

Holman, Kevin J Operation Services 75,734 309 76,043

Ikesaka, Wayne Corporate Services 109,290 5,926 115,216

Imrich, Douglas R Fire Rescue Services 96,548 - 96,548

Irwin, Sean A Operation Services 78,041 2,422 80,462

Juniper, Ken L Engineering/GIS Services 77,262 41 77,303

Employee Remuneration and Expenses




Kanester, Clinton Corporate Services 84,577 625 85,202

Keenan, Trevor J Fire Rescue Services 88,704 - 88,704

Kerfoot, Lorne Operation Services 75,850 186 76,035

Klymchyk, Michael Engineering/GIS Services 77,261 335 77,596

Koenig, Shirley A Operation Services 125,389 1,620 127,009

Kozin, Serge Operation Services 78,514 1,275 79,788

Kruysifix, Derek Fire Rescue Services 90,009 - 90,009

Kulak, Chris Fire Rescue Services 105,029 3,387 108,416

Laing Gahr, Tanya Corporate Services 75,389 5,126 80,515

Law, Debra L Financial Services 90,591 4,082 94,673

Mahortoff, Gary Operation Services 86,388 - 86,388

Mann, Reinhard Fire Rescue Services 111,455 14 111,470

Markel, Marvin A Operation Services 81,761 130 81,891

Marr, Andrew Operation Services 93,618 1,156 94,774

Martens, Cornelius Community Development Services 102,576 554 103,130

McGiverin, Ryan E Fire Rescue Services 87,154 - 87,154

McLuckie, Paula M Human Resources Services 96,410 4,375 100,785

Miles, Robert Community Development Services 84,836 2,026 86,861

Mitchell, Stanley Recreation Services 77,838 - 77,838

Olson, Greg W Operation Services 76,222 61 76,282

Olson, Matthew B Fire Rescue Services 87,789 - 87,789

Parsons, Brian G Fire Rescue Services 89,629 765 90,393

Pearce, William C Administration Services 181,561 6,629 188,190

Pearson, Joel M Fire Rescue Services 83,545 - 83,545

Poole, Kevin W Community Development Services 104,069 10,190 114,260

Pshyk, Scott J Fire Rescue Services 82,806 - 82,806

Reich, Allyson Fire Rescue Services 85,193 765 85,958

Reichlin, Guido Fire Rescue Services 87,776 - 87,776

Rice, James D Operation Services 101,795 3,785 105,580

Rintoul, Dale M Community Development Services 103,763 1,202 104,965

Robinson, Chris Fire Rescue Services 94,586 - 94,586

Roesler, Darren Operation Services 82,537 - 82,537

Ross, Doug Recreation Services 111,064 321 111,385

Satchell, Kris D Corporate Services 78,715 3,093 81,808

Sengotta, Ray G Operation Services 78,483 - 78,483

Shannon, Shannon Financial Services 83,011 291 83,302

Sibilleau, Dale R Fire Rescue Services 91,868 14 91,882

Skolrood, Lawrie Fire Rescue Services 116,091 505 116,596

Stoll, Michael Fire Rescue Services 88,690 99 88,789

Stranks, Ed J Engineering/GIS Services 94,456 1,181 95,637

Taylor, Dennis Operation Services 82,330 1,007 83,337

Employee Remuneration and Expenses | Continued




Thomas, Jamie Operation Services 85,832 366 86,198

Thompson, Greg Engineering/GIS Services 75,890 3,296 79,186

Tishenko, Alex Operation Services 90,836 - 90,836

Toopitsin, Henry Operation Services 76,419 1,438 77,856

Tucker, Cole Operation Services 80,739 86 80,825

Van Dyke, William Operation Services 82,988 1,028 84,016

Wakefield, Dean Fire Rescue Services 103,121 - 103,121

Walker, Dan Fire Rescue Services 112,594 425 113,019

Watson, Amanda Engineering/GIS Services 80,354 2,959 83,313

Watson, Brent Fire Rescue Services 99,981 3,183 103,164

Wycott, Curtis C Operation Services 78,054 2,750 80,804 $

8,491,698 $

128,528 $

8,620,225

All Other Employees $ 12,989,247 $ 125,874 $ 13,115,120

Grand Total $ 21,480,944 $ 254,402 $ 21,735,346

Employee Remuneration and Expenses | Continued


In accordance with the requirements of the Financial Information Act below is a schedule of Severance Agreements and equivalent's month range of compensation for the year 2013 for which severance payments commenced in 2013.

Number of Severance Agreements: 2

Range of equivalent's months pay: 6

Approved by: Dated: June 9, 2015 Director, Financial Services

Approved by Council: Dated: June 4, 2015 Mayor

In accordance with the requirements of the Financial Information Act below is a summary of Guarantees in effect for the year 2014.

The City of Vernon has issued an irrevocable letter of credit in favour of the Agricultural Land Commission (ALC) as a guarantee to fund works required by the ALC as a condition of a property being removed from the Agricultural Land Reserve. The property is

being developed by the City. The amount of the guarantee is $716,000. As of December 31, 2013 no drawing on the letter of credit has occurred.

Approved by: Dated: June 9, 2015 Director, Financial Services

Approved by Council: Dated: June 4, 2015 Mayor

Statement of Severance Agreements

Statement of Guarantees


CONSULTANT 2014 2013 SERVICES PROVIDED

Aecom Canada $ - $ 23,631 Lower BX creek study & VWRC blower optimization

Aeroquest Mapcon Inc 26,206 - Upgrade DTM/contours & building dripline collection

Associated Engineering BC Ltd 16,685 5,954 Engineering - various projects

Atomic Crayon - 3,264 OCP logo design

Baycroft, Robin 3,900 - Spring marketing design

Bourcet Engineering Ltd 2,095 1,557 Engineering - Polson Park project

Cameron, Kim 4,200 6,104 Copywriting services

Canadian Professional Management Services 25,098 - Consulting servics

Caslys Consulting Ltd - 4,575 Updating conservation rankings

Cityspaces Consulting Ltd - 39,234 Consultant for housing needs assessment

Delta T Consultants Ltd 20,076 - Recreation projects

Digital Boundary Group - 14,175 IS security audit

Distefano Architecture Ltd 42,546 - Recreation projects

DMD & Associates Ltd - 1,468 Contractor for signal optimization

EMA Consulting Ltd 8,873 - Engineering - Predator Ridge Fire Hall

Empac Engineering 2,856 6,475 Engineering - various projects

Eric Haupt Forestry Consultant 4,362 2,688 Cemetery pine beetle

ESRI Canada Limited 5,812 7,182 Asset management services

FH Black & Company 4,299 1,107 Caseware implementation

Fletcher Paine Associates 41,516 9,971 Engineering - various projects

Forsite Consultants Ltd 25,793 - Community wildlife protection plan

Golder Associates Ltd 21,374 3,584 Engineering - various projects

Healthquest Occu.Health & Disability Mgmt Services - 2,363 Medical assessment

Kerr Wood Leidal Services 29,439 65,520 Engineering - various projects

KPMG - 78,521 Core review

Landinfo Technologies - 25,032 GIS consulting

Latitude Geographics - 21,818 GIS software maintenance and GIS services

Levelton Engineering Ltd 6,580 - Air sampling

Maddox, W E - 13,653 Surveying services - various departments

Meridian Rehabilitation Consulting Inc 1,761 1,056 Ergonomic Assessments MHPM Project Managers Inc 38,406 - Pre-treatment facility

Mid Island Safety Consulting Inc 14,418 - COR safety audit

Monaghan Engineering & Co 77,077 149,207 Engineering - various projects

Monashee Surveying & Geomatics 11,293 4,584 Surveying services - various departments

MQN Architects 102,373 - Recreation projects

Naito Environmental 992 - Recreation centre entrance upgrades

Nova Trans Engineering Inc 15,377 16,598 North Okanagan transportation model

Outdoor Discoveries Interpretive Services - 6,290 Top Ten Trails project

Peak Environmental Inc 1,639 - Hazardous materials assessment

Pin Point Surveying Ltd 15,506 1,515 Surveying services - various projects

Pinchin West Ltd 3,071 - IQA assessment

Consulting Fees Paid


CONSULTANT 2014 2013 SERVICES PROVIDED

Pitt, Ewen 5,846 - RCMP security interviews

Postmedia Network Inc - 6,038 Marketing services - Discover BC advertisement

Quantum Graphics 15,120 - Visitor guide

Questica Inc - 1,017 Professional services and support

R355 Enterprises Ltd 152,825 - Consulting and general contracting services

R A Engineering (1997) Ltd 3,875 - Recreation centre upgrades

Regional District of North Okanagan 20,000 - Regional employment lands action plan

Right Mind Media 9,680 - Communications services

Russell N Shortt - 6,826 Surveying services - various projects

Schoenne & Associates - 2,937 Appraisal services

Shatzko Engineering 25,177 23,218 Engineering - various projects

Smith + Anderson Falcon Engineering Ltd 3,150 - MCC and feeder replacement at recreation complex

SNC - Lavalin 9,356 - Airport pavement feasibility study

Social Planning Council for the North Okanagan 45,000 85,000 Social planning services

Sproing Creative (Ingenius Web design) 11,958 1,526 Website hosting and support

Stephanie Tambellini Design Studio Inc 7,199 - Visitor guide and advertising

Sticky Consulting 7,665 3,129 Digital insight reporting and image optimization

Strategic Infrastructure Management Inc 110,524 122,366 Contractor for sustainable infrastructure plan

Summit Environmental Consultants Inc 25,503 59,929 Environmental - various projects

TDM Consulting 3,703 16,906 Surveying services - various projects

Tempest 6,626 - Prospero accounts receivable support

Tetra Tech EBA Inc 38,471 7,345 Engineering - various projects

The Web Advisors 2,731 11,052 Tourism e-mail marketing services

Think Social Media Ltd - 6,161 Social media audit

Thompson Okanagan Tourism 87,492 22,730 Tourism campaigns and advertising

Tim Dillon & Associates - 5,380 Human resources consulting

UES Engineering 18,900 - Engineering - various projects

Urban Systems 46,448 104,344 Environmental impact study - road corridor

Ursus Heritage Consulting 3,803 - Assessment of Okanagan flood protection

Watt Consulting Group (Boulevard Transportation) 12,192 - Parking and school zone

Williams Engineering Canada Inc 10,194 1,432 Engineering - various projects

WSP Canada Inc (Focus Corporation) 26,437 6,357 Engineering - various projects

Total $1,283,497 $1,010,818

Footnotes:

1. Consulting fees are defined for this purpose as fees paid to a professional person or firm for advisory contract services where the City was not able to obtain such services from in-house sources. Legal fees are not included. 2. All amounts reported are inclusive of applicable taxes.

Consulting Fees Paid | Continued


PAYEE 2014 2013 GRANT TYPE

Allan Brooks Nature Centre Society $ 7,500 $ - Council Discretionary Grant

BC Grape Growers Association - 13,257 Grants In Aid

BC Housing Management Commission - 44,823 Grants In Aid

BC Housing Management Commission - 36,547 Grants In Aid

Canada Day Committee 1,000 10,500 Canada Day Contribution

Canada Day Fireworks Committee 4,500 - Federal Grant Funds

Canada Day Fireworks Committee 10,000 - Fireworks Canada Day Show

Chippendale, Sean 496 500 Heritage Restoration Grant

Counterpunch Boxing Club 250 - Bronze Sponsorship Amateur Boxing Tournament

Denk, Karl Friederich - 5,000 Heritage Restoration Grant

Douglas, Carol - 1,898 Heritage Restoration Grant

Downtown Vernon Association 8,000 8,000 Council Discretionary Grant

Downtown Vernon Association 37,000 37,000 Downtown Landscaping Maintenance

Family Resource Center Society For North Okanagan 6,000 - Council Discretionary Grant

Insurance Allocation - 12,079 Grants In Aid

Kadach, Linda - 1,200 Heritage Restoration Grant

Kalamalka Highlanders Pipe Band - 1,050 Grants In Aid

Keryluke, Debra 378 - Heritage Retention Incentive Program

Literacy And Youth Initiatives Society - 4,000 Council Discretionary Grant

Loughery Mural Artworks Foundation - 10,000 Grants In Aid

Nobrega, Darren 500 - Heritage Retention Incentive Program

North Okanagan Pipes And Drums - 1,250 Grants In Aid

Okanagan Military Tattoo Society 5,000 - Council Discretionary Grant

O'Keefe Ranch Heritage Society 150,000 150,000 Operating And Capital Grants

Regional District Of North Okanagan - 27,362 Silver Star Grant In Aid

Ribbons Of Green Trails Society 2,000 - Council Discretionary Grant

Rotary Club Vernon And Silver Star - 1,500 Council Discretionary Grant

Royal Canadian Legion - 8,000 Council Discretionary Grant

Schubert Centre Society 5,371 - Council Discretionary Grant

Shaw, Murray and Patricia 500 500 Heritage Restoration Grant

Upper Room Mission 10,000 15,000 Community Grant

Van De Vyvere, Jan - 500 Heritage Restoration Grant

Vernon BMX Club 2,500 - Council Discretionary Grant

Vernon Concert Band Society - 1,500 Grants In Aid

Vernon Winter Carnival Society 10,000 10,000 Community Grant

Total Grants $260,995 $401,466

Grants to Organizations


`

VENDOR NAME 2014 2013* PURPOSE

0696633 BC Ltd dba Precision Cleaners 85,001 93,056 Contractor for janitorial services at RCMP and parks facilities

0705534 BC Ltd - 27,195 2011, 2012 and 2013 supplemental cycle refund

0853078 BC Ltd - 35,186 Refund of utility service adjustment refund

0877742 BC Ltd - 25,160 Cash security DP00387 refund

0944125 BC Ltd - 41,507 Cash security BP004569 refund

4246551 Canada Inc c/o Rona Home Centre - 26,015 2012 supplemental cycle refund

460463 BC Ltd - 363,749 Refund of cash security SUB00151 and 2012 supplemental cycle refund

588590 BC Ltd Dba Microserve Financial - 36,153 Purchase computer hardware

1 & 2 Electric Ltd 142,723 - Contractor for electrical various buildings

6-4 Building Maintenance Ltd 45,796 27,518 Contractor for janitorial services for downtown washroom facilities

A & D Asphalt Solutions Ltd 332,377 163,121 Contractor for paving

A & G Supply Ltd 44,458 - Contractor for commercial cleaning products

Aberdeen Plumbing & Heating Services Ltd 31,175 - Contractor for plumbing and heating various buildings

Acura Embedded System Inc - 40,118 Purchase of Fire Department equipment

Advantage Asset Tracking 63,665 60,079 GPS units for fleet and monitoring for the year

Aeroquest Mapcon Inc 26,206 - Contract for DTM surface uplift and building drip line collection

Aerzen Canada Inc - 100,207 Purchase water reclamation plant aeration blower

Alfa Laval Inc 37,744 - Contractor for centrifuge rotating assembly overhaul at VWRC

Allpro Tree & Landscape Services 43,678 56,965 Contractor for tree maintenance

Andrew Sheret Ltd 38,164 36,939 Purchase supplies for building maintenance

Anixter 30,815 - Traffic signal supplies

Aqua-Bility Projects Ltd - 58,915 Contractor for Mackay Reservoir valve work

Arborcare - 28,287 Contractor for chipping program

ATCO Structures & Logistics - 49,183 Purchase lavatory building

ATS Electric & Technical Service Ltd 37,096 - Contractor for electrical and lighting for recreation centres

Avenue Machinery Corp 33,585 - Purchase tractor, mower, and materials

Bancorp Growth Mortgage Fund Inc - 96,678 Cash security SUB00089 refund

Bannister Chev-Geo-Olds Inc 28,137 - Purchase vehicle

BC Assessment Authority 545,174 557,023 Transfer BC assessment taxes collected

BC Housing Management Commission - 81,371 Refund development cost charges BP004522 and BP004523

BC Hydro & Power Authority 2,277,909 1,404,889 Electric utility, pole relocate and lift station work

BC Transit 1,937,309 2,032,098 Contractor for transit services

Beat the Drum Advertising Inc - 99,353 Contractor for BC and Alberta advertising

Bennett Contracting Ltd - 576,719 Contractor 24 Ave upgrade and Tronson Road phase 111

Bercum Builders Inc 92,006 - Refund cash security BP004639 and refund DCC fees

BFI Canada Inc 1,594,149 1,600,973 Contractor residential garbage collection and recycling

Biomaxx Wastewater Solutions Inc 50,938 103,255 Purchase supplies for sanitary sewer operation

Payments to Vendors in Excess of $25,000



Black Press Group Ltd 99,099 89,306 Local newspaper advertising

Blueridge Landscaping & Maint Ltd - 81,972 Contractor for cemetery and parks maintenance

Brenntag Canada Inc 76,765 49,630 Purchase chlorine products

Brian's Heavy Equipment Painting - 29,370 Contractor for painting services

Bry-Mac Mechanical Ltd 74,889 38,555 Mechanical contractor for HVAC and sheet metal for CSB and RCMP

Busy Bee Pest Control 33,600 - Contract for weed control

C G L Contracting - 2,227,098 Contractor 30 Ave revitalization & 48th Ave upgrade

Canada Post Corporation 49,332 50,927 Postage

Canada Safety Equipment Ltd 38329 - Purchase safety equipment

Canadian Professional Mgmt Services Inc 25,098 - Management consulting fees

Capri Insurance 341,512 325,944 City facility insurance

Captain Bailey Way Development Corp - 50,000 Internal lending to City-owned subsidiary

Caro Analytical Services 34,368 26,064 Contractor for analytical testing

Chances Bulk Unloading 40,173 34,122 Purchase road de-icing salt

Chapman Mechanical Ltd - 34,734 Contractor water reclamation plant aeration blower installation

C I Investments - 27,654 RRSP contributions on behalf of employee

Cityspaces Consulting Ltd - 39,234 Consultant for housing needs assessment

Civic Info British Columbia 27,988 - Civic membership dues, training and conferences

Combined Mechanical Contractors Ltd 84,535 - Purchase hot water storage tanks for recreation centre

Corix Utilities Inc 73,396 74,533 Purchase supplies and materials for water system

Corix Water Products Limited Partnership 180,670 105,483 Purchase supplies and materials for water system

Corporate Express 48,001 43,265 Purchase office supplies

Davidson Lawyers LLP 159,362 278,504 Legal fees and land purchase

Delnor Construction Inc 53,574 - Recreation centre renovation

Direct Energy Marketing Ltd 145,651 59,754 Natural gas utility

Distefano Architecture Ltd 42,546 - Consulting for recreation centre renovation

District of Coldstream 31,254 377,096 Reimburse quarterly water operating expenses and transit payments

Doering Building Group Inc - 28,018 Cash security DP00417 and ZON00189 refund

Down Under Pipe Inspection - 36,791 Contractor for storm and sanitary main inspections

Downtown Vernon Association (DVA) 380,503 377,186 Transfer business improvement area taxes and other

Durning Directions & Services 150,417 167,992 Contractor for tourism office operation

Dynamic Asphalt Services Inc 70,902 51,451 Contractor for crack sealing

EB Horsman & Son Ltd 159,542 111,914 Purchase inventoried parts and supplies

EBA Engineering Consultants Ltd 38,471 - Engineering consultants - various projects

E/E Electrical Enterprise Ltd 30,767 - Equipment and maintenance supplies

Econolite Canada Inc 118,887 77,704 Purchase supplies for traffic control and street lights

Eddie's Blacktop Maintenance - 27,444 Contractor for paving

EMCO Corporation 64,647 32,269 Purchase supplies for various water related products

EMPS Electric Motor & Pump Service Ltd 102,227 65,515 Contractor for pump supply and service

Enns, Nancy C 52,248 - Refund 2014 tax sale property - folio 05864.505

Payments to Vendors in Excess of $25,000 | Continued



ESRI Canada Limited 72,032 76,739 Contractor for software maintenance

Evergreen Building Maintenance Inc 132,229 164,431 Contractor for tree maintenance

Executive Flight Centre Fuel Services Ltd 431,546 654,125 Purchase jet and aviation fuel for resale at airport

Fletcher Paine Associates Engineering Ltd 159,052 140,753 Engineering services - various projects

Forsite Consultants Ltd. 31,463 - Consulting for community wildfire protection plan

Fortis BC 400,784 223,375 Natural gas utility

FP Teleset Dept 35,000 30,000 Postage payment postage meter

GCR Rail Crossings (Div of 544834 BC Ltd) 28,718 - Purchase concrete crossing material

Gelter, Colette - 86,702 Cash security SUB00496 refund

Gilbert Parts Depot 41,247 26,773 Purchase supplies for City fleet

Great-West Life Insurance Company - 552,829 Employee benefits includes employee paid long term disability payments (July 1, 2013 Manulife assumed benefits service)

Grizzly Curb & Concrete Ltd 174,809 137,351 Contractor for curb, gutter and sidewalk projects

Gro Green Natures Lawn & Tree Care - 38,599 Contractor for landscaping and maintenance

Grounds Guys Landscape Management 507,054 511,837 Contractor for landscaping and maintenance

Guillevin International Co 38,882 87,980 Purchase inventoried parts and supplies

Hach Sales & Service Canada Ltd 52,851 56,834 Purchase supplies for water reclamation plant

Henderson Recreation Equipment Limited 33,055 - Purchase playground structure for Kiwanis Park

Home Depot 46,748 40,189 Purchase supplies and materials maintenance

Horizon Tree Service Ltd - 34,726 Contractor for tree maintenance

Houle Electric Limited 44,982 - Contractor for recreation centre MCC upgrade

Howard Industries (2010) Ltd 39,030 34,658 Contractor for meals to RCMP detachment

Husky Oil Marketing Co 69,326 64,903 Purchase supplies for City fleet

Insurance Corporation of BC 72,632 70,492 City fleet insurance

International Crowd Management Inc (ICM) 43,109 - Contractor for security at Kal Tire Place

Interprovincial Traffic Services Ltd 77,641 82,902 Purchase supplies for traffic signals

IRL Truck Centre Ltd 43,033 26,299 Purchase supplies for City fleet

Jenner, Donald W. - 26,478 Tax sale participant

K E S Resource Enterprise Ltd - 52,358 Purchase railway crossing concrete panels

Kal Tire Ltd 31,579 57,915 Purchase tires for City fleet

Kelowna - City Of 734,068 585,956 Cost sharing regional bio-solids facility and wastewater contributions

Kelpin, Charles - 48,794 Tax sale participant

Kerr Wood Leidal Associates Ltd 247,951 81,015 Engineering services - various projects

Knight's Vacuum Services Ltd 56,705 54,962 Bio solids disposal

Kon Kast Products (2005) Ltd - 71,082 Purchase Tronson Road barriers

KPMG LLP T4348 49,560 121,286 Financial statement audit and core service review

Kubb Gerald 84,170 - Refund cash security SUB000568

Landinfo Technologies Inc - 25,032 Consultant for GIS services

Latitude Geographic's - 26,186 Contractor for GIS software maintenance and GIS services

Ledgestone Properties Ltd - 34,690 Rent for Development Services Building

Leko Pre Cast Ltd - 31,245 Purchase inventoried parts and supplies




Lidstone & Company 147,758 153,028 Legal fees

Links Lawn & Yard Services 94,081 26,748 Contractor for snow removal various locations

Loblaw Properties West Inc - 101,210 2012 supplemental cycle refund

London Drugs 26,383 53,659 Information services supplies and employee purchase plan (EPP) employees pay for EPP

Lordco Parts Ltd 25,340 31,757 Purchase supplies for City fleet

Maddocks Construction Ltd 286,082 - Contractor for recreation centre roofing and pool

Manulife Financial 1,106,488 550,490 Employee benefits includes employee paid long term disability effective July 1, 2013 (previously Great-West Life)

Marjak Leasing - 64,749 Purchase supplies fleet vehicles, leasing vehicles

Marlin Travel 34,332 - Employee purchase plan (EPP) employees pay for EPP

Medical Services Plan of BC 413,046 364,728 Employee benefits

MHPM Project Managers Inc 38,406 - Project management for VWRC OSB pre treatment facility

Michelin North America (Canada) Inc - 28,281 Purchase tires for City fleet

Minister of Finance 10,738,483 11,110,060 Transfer of school taxes collected

MJI Contracting Inc 30,887 - Abatement and demo of house

Modern Energy Management Ltd 135,949 - Contractor for mechanical repair and maintenance at recreation facilities

Monaghan Engineering & Consulting Ltd 385,313 149,207 Engineering services - various projects

Morfco Supplies Ltd - 26,581 Purchase inventoried parts and supplies

MQN Architects 102,373 - Consulting and architectural fees for recreation facilities

Mpowered Ventures Ltd - 25,072 Contractor for mobile inspection management system and maintenance

Municipal Insurance Assoc Of BC 647,793 90,827 Liability insurance - premiums and deductibles

Municipal Pension Plan 3,441,272 3,294,145 Remittance employer and employee portions of pension contributions

N & T Properties Ltd 92,338 57,265 Cash security BP003828 refund

Newterra - 81,081 Purchase water reclamation plant odour control products

N O Columbia-Shuswap Regional Hospital 2,464,668 2,399,091 Transfer regional hospital taxes collected

Northern Computer 40,667 - Purchase of VMWare servers for infrastructure upgrade

Nu Gro Ltd - Direct Solutions 25,642 - Purchase turf fertilizer for parks

Oakcreek Golf & Turf Inc 59,727 - Purchase mower and parts

Okanagan Aggregates Ltd 1,089,764 816,149 Purchase aggregate

Okanagan Regional Library 1,664,319 2,118,170 Transfer regional library taxes collected

Okanagan Traffic Control Professionals Inc 133,586 120,660 Contractor for traffic control services

O'Keefe Ranch & Historical Society 152,637 150,000 Grant in aid

Omega Communications Ltd 84,661 37,572 Contractor for communication supplies and services

Open Storage Solutions 47,587 - Purchase data storage

Pacific Coastcom Communications Inc - 33,069 Contractor for communication supplies and services

Paragon Strategic Services Ltd - 31,535 Contractor for employee development and training

Petro-Canada 496,457 519,591 Purchase fuel for City fleet

Petrovalue Products Canada Inc 386,553 - Purchase aviation fuel

Postill Nixon Earthworks 1,437,108 27,715 Contractor for heavy duty equipment services




Precision Construction 91,372 - Refund cash security SUB00418

Predator Ridge Limited Partnership 36,006 - Snow removal and Ellison show home dinner

Progressive Sealing Inc 26,467 - Purchase equipment and parts for pump repair at VWRC

R355 Enterprises Ltd 3,813,516 - Contractor various road improvement projects

RBC Dominion Securities 25,104 - RRSP contributions on behalf of employee

R E Postill & Sons Ltd 424,131 305,896 Purchase aggregate

Receiver General for Canada 12,945,760 12,565,494 Remittance employee source deductions and ramp contract payments

Regional District of North Okanagan 28,623,750 24,455,219 Long-term debt payments, annual regional tax requisition, transfer of water revenue and other

Restorative Justice Society of North Okanagan 44,858 50,444 Contractor for restorative justice services

Ricoh Canada Inc 312,526 42,780 Purchase office equipment

R L Walker Contracting Ltd - 58,170 Silver Star Rd drainage & contractor for snow removal at various locations

R P B Holdings Ltd 45,877 Refund folio 04129.002 supplementals

Rudnisky, Kenneth M 137,493 191,891 Tax sale participant

S J Pasechnik & Son (1997) Ltd 846,200 383,763 Contractor for Adventure Bay sewer and water extension

Seal Tec Industries Ltd 179,463 100,403 Contractor for crack sealing airport

Shatzko Engineering Ltd 112,427 107,311 Engineering services - various projects

Silver Star Ski Resort Ltd 29,446 50,731 Employee purchase plan (EPP) employees pay 100% for EPP

Social Planning Council for the North Okanagan 60,000 85,000 Contractor for crime prevention and responsible gaming initiative

Softchoice LP 26,212 113,190 Purchase of computer software

Sparkling Hill Wellness Hotel Ltd - 75,150 Cash security EP000054 refund

Stantec Consulting Ltd 69,077 - Consulting for waterfront flood protection

Stephanie Tambellini Design Studio Inc 26,346 - Contractor for tourism promotion and advertising

Strategic Infrastructure Management Inc 110,524 122,366 Contractor for sustainable infrastructure plan

Sumas Remediation Services Inc 129,363 - Contractor for sewer rehabilitation - 20 St

Summit Environmental Consultants Inc 44,414 59,929 Contractor for environmental consulting

Summit Trailer Ltd 58,321 - Purchase of equipment

Sunset West Mechanical Ltd 31,466 - Contractor for HVAC at various locations

Super Save Disposal Inc 55,371 31,819 Contractor for garbage removal at City facilities

Taylor Jordan Chafetz Barristers & Solicitors 64,405 - Legal fees

TD Waterhouse Canada Inc 42,469 - RRSP contributions on behalf of employee

Telus Communications (BC) Inc 150,747 96,423 Telephone utility

Telus Mobility Cellular Inc 107,666 103,650 Telephone utility

Telus Services Inc 113,434 71,716 Telephone utility

Tempest Development Group 65,047 33,930 Contractor tempest computer software

The Hollypark Organization Inc - 65,339 Cash security DP000398 refund

The Original Lava Marketing Co - 42,790 Contract communications officer

Thompson Okanagan Tourism 87,690 - Purchase advertising

Timber Facility Ltd 30,095 - Refund folio 00167.000 supplemental




Tirecraft (Peters Tire) - 31,277 Fleet maintenance and employee purchase plan (EPP) employees pay the EPP

Trafco (Canada) 138,431 - Purchase 3m opticom discriminator & supplies for traffic signals

Union of BC Municipalities (UBCM) - 25,219 Annual dues and remittance of license decal fees

Urban Systems Ltd 46,448 213,356 Consultant for liquid waste management plan and other studies

Vadim Management Group Ltd 27,397 27,902 Contractor for Vadim software support

Valley First Credit Union 44,484 - RRSP contributions on behalf of employee

Valleyview Contracting 50,929 46,421 Contractor for roadside mowing

VanCity Savings Credit Union - 45,800 RRSP contributions on behalf of employee

Venture Training (VDACL) - 54,617 Contractor for landscape maintenance

Vernon & District Assn for Community Living 43,783 - Contractor for landscaping at various areas

Vernon Civic Employees Union - Local 626 234,353 237,066 Remittance of employee union dues

Vernon Firefighters Association Local 1517 57,213 62,479 Remittance of firefighter union dues

Vernon Line Painting Ltd 242,812 202,201 Contractor for various line painting

Vernon On Site Fencing 43,496 - Contract for snow removal and fencing

Vernon Paving Ltd 34,030 43,851 Contractor for paving

Vernon Roofing & Renovations 32,677 74,226 Contractor for water reclamation plant roof repair

Vernon Volunteer Firefighters Association 28,513 - Remittance of volunteer firefighter union dues

Waterhouse Environmental Services Corporation 124,894 142,506 Purchase supplies for water reclamation plant and Duteau Creek plant

Wesbild Holdings 25,215 - Refund cash security SUB00521

Wesclean Equipment & Cleaning Supplies 34,553 31,461 Purchase equipment and cleaning supplies

Western Industrial Relations Ltd 33,948 - Bargaining and negotiations with CUPE

Western Sports Developments Ltd 28,092 - Contractor for ice at arenas

Wise Wildlife Control Service 52,206 47,840 Contractor for wildlife control at airport

Wolseley Waterworks Group 69,065 57,705 Purchase supplies for water reclamation plant

Workers Compensation Board 215,286 250,911 Remittance of employee WCB benefits

WSP Canada Inc (Focus Corporation) 281,293 506,516 Engineering services - various projects

Xylem Canada Co (Previously Itt Flygt) 36,762 - Purchase lateral and submersible pumps

Young Anderson 39,985 56,274 Legal fees

Total 90,888,717 81,034,210

All Others Under $25,000 4,690,505 3,697,239

Grand Total Payments To Vendors $ 95,579,222 $ 84,731,449

*2013 Amounts are only those amounts appearing in the 2013 Vendor Payment Report. Vendors showing 2013 amounts as zero may have receivedpayments from the City in 2013 but were below the threshold of $25,000.




Divisional Summaries



CITY ADMINISTRATION PURPOSE The Chief Administrative Officer (CAO) directs and coordinates the general management of business affairs of the corporation, in accordance with the Bylaws, policies and plans approved by Council; to ensure the delivery of high quality services and facilities which preserve or enhance the social, economic and physical wellbeing of the community. The CAO is responsible to ensure that innovative programs and services are developed and implemented to meet the ever changing needs of the community, while ensuring fiscal responsibility.

HIGHLIGHTS of 2014 Administration focused on completion and delivery of Council’s 2012-2014 Strategic Priorities. Achievements have been reported to the public every six months with the final report card released at the September 22, 2014 regular meeting of Council. Highlights of 2014 included: Council endorsement of the Official Community Plan, initiate the five year Recreation Services Agreement, implement the Parks Agreement, implement the Sub-Regional Parks Maintenance and Operating Agreement, initiate construction of Predator Ridge Fire Hall, complete 25 Year Transit Future Plan, complete initial plans to twin Kal Tire Place and decommission the Civic Arena, complete central Visitor Information Centre, complete Strategic Infrastructure Investment Plan (roads).

OUTLOOK for 2015 The immediate focus of the 2015 Budget remains operating costs restraint and reinvestment into public municipal infrastructure in accordance with the Council endorsed Strategic Infrastructure Investment Plan. The Corporation continues to focus on investment attraction, supporting growth of existing businesses, continual improvement of the business environment and facilitating Council endorsed development. Administration will seek Council’s policy direction through a new four year Strategic Plan for the term 2015-2018 inclusive. The Strategic Plan will cite Council’s priority deliverables. The proposed 2015 Budget will be revised in accordance with Council direction.

COUNCIL PURPOSE City Council consists of six Councillors and one Mayor elected for a term of three years. The organizational purpose of an elected Councillor is to provide leadership through policy and bylaws for delivery of City services.

HIGHLIGHTS of 2014 Council focused on fiscal restraint while protecting the scope and levels of municipal services historically enjoyed by residents and visitors to the community. Council pushed towards completion of its aggressive three year Strategic Plan. Accomplishments are cited in detail within the Strategic Priorities report card presented at the September 22, 2014 open Council meeting.

OUTLOOK for 2015 The community will look to Council for overall budget policy direction and strategic deliverables for the 2015-2018 term.

Administrative Services



CORPORATE SERVICES GENERAL PURPOSE Corporate Services provides the communication link between Council, City Divisions and the general public. Responsible for Legislative Services, Communications, Real Estate, Information Services, Bylaw Enforcement, RCMP Municipal Staff, and the Safe Communities/Community Policing Departments.

HIGHLIGHTS of 2014 In addition to the Highlights of the Current Year as outlined in each Department within Corporate Services, the first phase of restructuring the RCMP Municipal Employees has been completed. November 15, 2014 will be the Municipal Elections for Mayor and Council. The recruitment of the Communications/Grants Coordinator was completed. Electronic Records Management is underway under the direction of the new Records Coordinator. The goals outlined within Council's Strategic Priorities are completed with many on going initiatives, as well as the directives from the KPMG Core Review.

OUTLOOK for 2015 Corporate Services will be continuing with the restructure of the various Departments within the Division through 2015 which includes RCMP Municipal Employees and the Protective Services Division (Bylaw, Community Policing and Safe Communities). Electronic Records Management to be completed by December 2015. Focus on providing each Department within the Division guidance and support as we continue to review services and structure to gain efficiencies in our delivery of service to staff and the citizens of our community. A provision for a referendum in 2015 on ice sheet replacement in the amount of $70,000 has ben made, subject to Council approval.

INFORMATION SERVICES PURPOSE Information Services (IS) provides strategic planning, management, technical and administrative support for the City of Vernon’s network infrastructure. The City’s IS Department supports 50 Servers, 27 Enterprise software products, 392 stations, 203 mobile devices, Cisco IP based telephony solution with 282 sets, 1 PBX system, 49 switches, and manages 43 contracts with a value of $300,000 annually.

HIGHLIGHTS in 2014 2014 had 3 major projects, the first was the migration of Recreation and Kal Tire Place to the City of Vernon network structure; the second was the Wireless project which removed long term leasing costs for Vernon Water Reclamation Centre (VWRC); Vernon Tourism and the Recreation Center; the 3rd was the mandated move to Windows 7 for E-Division RCMP. Each of these projects were over 150 hours, with the RCMP Windows 7 project well over 300 hours.

Information Services has also been concentrating its efforts on upgrading its existing infrastructure, with a 12 Terabyte Nimble storage device, VMWARE cloud with 4 redundant servers, the previously mentioned migration from Telus MAN to WAN, installation of Wireless networking for VWRC, Recreation Services and Vernon Tourist Center, as well as the installation of the Laserfiche ERMS product have all been given priority this year.

OUTLOOK in 2015 Information Services has tracked service calls to Recreation Services and Kal Tire place for the first half of the year, and a revenue recovery model has been put in place for 2015. Going forward we will be continuing to integrate their systems into our network structure, however with their Enterprise product (Class) migrating to a cloud solution in 2017, a major initiative will be its replacement.

Information services has submitted an increase to it's current "Labour Cupe A" budget to facilitate upgrading the P/T Information Technician from 21 hours to 35 hours or full time.

Information services has also included in its salaries the 1.5 hours for counter coverage that Bylaws was previously funding.

Corporate Services



Both the labour increase and transfer will assist the City of Vernon IS department to keep service levels the same due to the inclusion of Recreation and Kal Tire Place and new projects and initiatives from other City divisions (Web RFP, Building license upgrade, Tempest online forms etc)

In 2014 Information services negotiated 3 longer term software maintenance contracts instead of normal annual contracts. To properly fund for these contracts when they come due (Ironspeed in 2 years, Kaspersky in 3, and Nimble in 5) Information Services has increased its annual IS reserve budget by $5431. If Kaspersky, Nimble and Ironspeed were to be purchased annually the cost would be $6955 per year.

The RCMP integrated detachment and its affect on Municipal Information Services staff is still unfolding with the Federal restructure. Currently City IS labour to service the detachment is slightly higher then 1 FTE and there is continued discussion and rumor that the Provincial laptops will be moved under the municipal staff for maintenance, if this occurs it would significantly negatively affect service levels at the detachment.

LAND SERVICES PURPOSE Land Services provides management of City owned lands, including: commercial leases, residential properties, leases of spray irrigation lands, crown leases, airport land leases and tie-downs, and responsibility for negotiating the acquisition and sale of property on behalf of the City. Land Services assists Planning and Engineering in securing Statutory Right of Ways and road dedications. Land Services assists numerous City Departments with encroachments on City lands and roads. In addition, Land Services provides recommendations for Council and other City Departments, regarding legal ramifications involving real estate.

HIGHLIGHTS of 2014 In 2014, Land Services provided revenue to the City through management of City owned lands and buildings including: commercial lands and buildings, the airport – commercial, infield, and tie-down lands, undeveloped park lands, and spray irrigation lands. Land Services provided recommendations to Council regarding development and disposition of City owned lands. Land Services provided oversight and administration of the the Parks and Facilities restructuring as directed by Greater Vernon Services including: the transfer of ownership from the Regional District to the City of over 40 park properties, and the transfer of ownership of eight park land properties from the City to the Regional District. New park land was purchased at Canadian Lakeview Estates. A lease for the Predator Ridge Fire hall was concluded. The City's first cash-in-lieu payment for parkland was facilitated. Land Services provided assistance to Engineering, Planning, Operations, Facilities, Economic Development, and Administration - providing valuations, acquiring land for roads and sidewalks, and negotiating Statutory Right of Ways to protect infrastructure. Encroachments on City lands continued to be managed, and when appropriate recognized by easements or licenses - with fees, where appropriate.

OUTLOOK for 2015 Land Services will continue to provide revenue to the City through the management of City owned lands, including: commercial land and building leases, parks and facilities properties that currently have residential or commercial tenants, airport land and hangar leases and tie-down rentals, leases of spray irrigation lands, and license fees for use of City lands. Land Services will continue responsibility for negotiating the acquisition and sale of property on behalf of the City. Land Services will continue to evaluate encroachments on City lands and facilitate appropriate dispositions. In addition, recommendations will be provided and negotiations facilitated at the request of Council, and on an on-going basis for: Operations, Engineering, Planning, Facilities, Parks, Economic Development, and Administration. Targeted projects for Land Services in 2015 include: recommendations to Council regarding the development potential of City owned, Downtown properties; completion of the subdivision of the McMechan Reservoir Lands and a report to Council on disposition options; and a report to Council regarding the potential development of the Hesperia Lands.

COMMUNICATIONS PURPOSE This area manages all aspects of media relations, grant coordination and program research. The Communications/Grants Coordinator works with senior administration and elected officials to enhance and maintain the Corporate image. Grant coordination includes maintaining positive relationships with Provincial and Federal elected officials and grant program staff, as well as advising staff and local community organizations.

HIGHLIGHTS of 2014 Development and endorsement of strategic communication plan and policy, which include guidelines for staff and Council members, public and media relations protocols, crisis communication protocols, visual identity standards and brand identity guidelines. Internal communications workshop in September identified key issues and solutions for all staff to develop well-managed, effective and positive internal communication strategy. Began process of reviewing website and reviewing expressions of interest for website redevelopment. Created image bank with professional photos for use with marketing materials and media releases. Developed grant policies and procedures to better coordinate grant application processes and track current available grants. Completed emergency communication training and worked in conjunction with emergency services and IS to develop crisis and emergency communication protocols and platforms.

Corporate Services | Continued


OUTLOOK for 2015 Develop public process handbook to guide staff and council on effective engagement and communication strategies. Complete website review in accordance with strategic communication plan priorities and branding guidelines. Develop internal communication "best practices" plan according to internal communication workshop recommendations. Expand image bank for marketing materials and media releases. Continue to actively pursue grants through the Senior Management Team.

PROTECTIVE SERVICES

BYLAW AND PARKING PURPOSE This Department looks after the administration and enforcement of approximately 40 Regulatory Bylaws, Council resolutions and policies within the City of Vernon. Education encouraging voluntary compliance is a Department priority. Compliance with the business licensing bylaw, sign bylaw, zoning bylaw, etc. are conducted for other Divisions. This Department patrols and maintains approximately 950 parking meters entailing 19 kilometers of sidewalk, five City owned parking lots, the Parkade, Residential permit zones and signed restricted parking areas. In addition, the Department provides security and compliance services to the downtown core, City Parks and lake access sites and provides a community safety initiative through education and compliance related to the Parks and Public Places bylaw, provisions within the Motor Vehicle Act which include restricted parking, abandoned vehicles, and enforcement of the City's Safe Premises bylaw. In addition, the Department contracts bylaw compliance and security services to the RDNO for sub-regional parks (Paddlewheel Park, Kin Beach, DND lands, Marshall Field, Coldstream Creek and Kal Beach).

HIGHLIGHTS of 2014 Implementation of radio dispatch system in cooperation with VFRS to replace loss of RCMP access. Modification of shift scheduling to continue providing a high level of service to the public. Modification of hours of operation, reducing previous coverage standard of 7:00 am - midnight to new standard of 8:30 am - 10:00 pm (November to March), 8:30 am - 11:00 pm (April and October), and 8:30 am - midnight (May to September). Continued implementation of Bylaw Department “Go Forward” plan. Continued cooperation and communication between Bylaw and other City Divisions. Continued and improved cooperation with Community Policing allowing volunteer assistance and response to neighbourhood concern as part of the Protective Services team. Continued cooperation with Social Agencies and other Community Partners. Participation in the COOL Team and amalgamation of the North Okanagan Poverty Outreach Team. Continued cooperation with the DVA regarding downtown events. Modification of the 29th Avenue Lot to allow day use parking.

OUTLOOK for 2015 Continued modification to enforcement and compliance practices will continue to affect revenue streams from parking and enforcement related functions for 2015. Customer focus related policies have been implemented at Council’s request. These policies have reduced revenues and results continue to be monitored. Officer presence and response in relation to Parks and Public Place bylaw enforcement (alcohol, hazardous activities, and improper behavior) both in Parks and the City Centre continues to be important to the residential and business communities. Patrol functions and proactive enforcement have been reduced but we remain responsive to complaints. Changes to Park administration and funding have required some modification to the budget. Revenues continue to be maintained similar to 2014 levels in most areas.

SAFE COMMUNITIES – COMMUNITY POLICING PURPOSE The Community Policing Office (CPO) manages information for over 50 programs and multiple crime prevention/reduction programs, projects and community initiatives. Staffed by 30 volunteers, the purpose of the CPO is to allow community members a place to access core unit programs such as the Citizens on Patrol, Speed Watch, Block Watch as well as gain access to information pertaining to drug awareness, bully awareness, cyber bullying prevention, personal, home and business safety, to name a few. Further, citizens can be directed to community agencies that meet their immediate needs. The CPO assists with the RCMP with distribution of Criminal Record checks and serve witness subpoenas.

HIGHLIGHTS of 2014 The CPO continues be a hub of safety education information. Cyber bullying; drug awareness; frauds, cons and scams; personal safety for all ages and capacities and bike skills presentations continue to be in high demand. Participation in community and City initiatives such as Partners in Action; the COOL Team; Neighbourhood Councils; the Homelessness Strategy and Harm Reduction Evaluation Action Teams; Municipal School Transportation Plan are ongoing as needed.

The Vernon Safety Ambassadors continue to be an asset to the City as a source of safety for seniors, tourists, the disenfranchised and all citizens of our community.

OUTLOOK for 2015 The Community Policing Office will continue to offer programming to meet the challenges of our diverse community in areas such as cyber bullying and internet safety; personal & home safety; crime prevention/reduction for businesses; pedestrian and bike safety for all ages.



The unit will continue to assist the RCMP serving witness subpoena’s and returning criminal record check. Vernon Safety Ambassador's will continue to be active in the summer months. The CPO is budgeting $80.00 per volunteer for a volunteer appreciation banquet. In 2015 the CP Office will be reviewing the core programming of the unit to ensure all programs are relevant and todays needs. School Programming will be reviewed.

SAFE COMMUNITIES – CRIME PREVENTION PURPOSE Crime Prevention Coordinator is responsible for programs that create, through education, a safer environment for the citizens of Vernon. Specifically: Vernon Citizens Patrol Program Vernon Speed Watch Operations Lock Out Auto Crime Program Vernon Block Watches Crime Free Multi-Housing Citizens Patrol Cell Watch (Distracted Driving) Crime Prevention Through Environmental Design "CPTED" (Reviews of complexes and building submissions)

HIGHLIGHTS of 2014 2014 saw an increase in interest from the community in volunteering. We have Certified 2 more Crime Free Multi-Housing buildings in Vernon. This Program specifically helps apartment owners, managers, residents, police and other agencies work together to keep illegal and nuisance activity off rental property. We helped 4 new areas of Vernon to become Block Watches and completed 2 others already started. Created an updated website presence for each of these crime prevention programs and a new brochure for the Citizens Patrol Programs in Vernon.

OUTLOOK for 2015 2015 will see the Vernon Citizens Patrol Volunteers used more effectively in times of emergency by both the RCMP and the Vernon Fire Department. Their training will be enhanced to make them a group responding to more of the needs in the City. Vernon continues to be the leader for the BC Interior in the Crime Free Multi-Housing program. We are looking at certifying 2 more buildings this year. Bringing the total of Certified CFMH buildings in Vernon to 6! 2015 will also see the addition of 2 more Block Watch Groups, (35) and bringing the total reach of this Crime Prevention Program to approximately 3000 residents.

ICBC remains a strong partner with our Citizens Patrol Group insuring updated equipment and Program training. Vernon Crime Prevention may be responsible to train and assist with the operation of the Lumby Citizens Patrol volunteers.

The volunteer base for our Citizens Patrol Program has increased to 60+ through another training course and exceptional resident participation. We budget $80.00 per volunteer, per year for recognition of their dedication and commitment to the City of Vernon and the RCMP. We have one of the best Citizens Patrol Programs in the Province because of Vernon City Councils support.

SAFE COMMUNIIES REGIONAL PROGRAM PURPOSE The Regional Programs Coordinator provides services to the 5 Electoral areas of the Regional District on the North Okanagan. The main focuses of service delivery has been addressing the issues of speeding, supporting and expanding Block Watch neighborhoods and providing crime prevention educational support through working with and strengthening community partnerships, and crime prevention awareness amongst community members. -Serves as liaison with the Vernon North Okanagan RCMP. -Establishes and maintains effective liaison with all members of the general community. -Schedules and delivers crime prevention presentations, WITS, Drug Awareness, Internet Safety, with local school districts and alternative school programs. -Conducts training, seminars, workshops, and individual educational sessions on crime prevention like, Ski Security Marking and Lock out Auto Crime as well as community safety programs, like Speed Watch, as required. -Prepares monthly reports. -Responds to public inquiries on current and emerging crime prevention related topics. -Serves as a Block Watch coordinator, trainer and facilitator for the Regional District. -Conducts security audits on residential and commercial properties as required. -Is now the contact person with the Conservation Service

HIGHLIGHTS of 2014 Increased the Block Watch Program to 21 by adding 3 new groups this year. Conducted over 200 Speed Watch Operations so far this year. Increased the number of Ski Watch Operations marking boards and skis as a Crime Prevention initiative.



Continued instructing the WITS programs and internet safety, drug awareness along with bike rodeos in all 4 Elementary schools in the areas we serve.

OUTLOOK for 2015 2015 will focus on community safety and crime prevention awareness and education in the communities we serve. Presentations to businesses, schools, senior and community groups are ongoing. This position will be working more closely with the Conservation Service than ever before bringing the Bear Aware program to the Regional District.

SAFE COMMUNITIES – RURAL PROGRAM PURPOSE The Rural Programs Coordinator provides Safe Community and Crime Prevention services to the District of Coldstream, City of Armstrong, the Township of Spallumcheen, the City of Enderby, and the Village of Lumby. The focus is on the delivery or programs addressing speeding, safe choices for youth, block watch, school programs, crime prevention assisting the North Okanagan Citizen on Patrol, and liaison with the communities on their individual needs in providing programs for safe communities.

HIGHLIGHTS of 2014 2014 has seen many educational workshops, block watch, school, boat/lake watch, personal safety, speed watch, citizens on patrol, Internet safety, etc., offered to various communities.

OUTLOOK for 2015 This coming year will focus on the specific needs of each of the rural communities. The Agreement between the partners expires December 31, 2014, and will not be renewed in the previous format. The communities have an opportunity to individually chose the programs that their citizens will benefit from and enter into agreements with the City of Vernon to provide those specific services.

LEGISLATIVE SERVICES PURPOSE The Legislative Services Department is responsible for the statutory duties of the Corporate Officer (Director of Corporate Services) including the preparation and preservation of all minute books and records of Council business, custody of City bylaws, administrative support to Council and its Committees, preparation of Council and Committee agendas, management of the City's Records Management Systems, including the Electronic Records Management System, Management of Freedom of Information (FOI) requests, and conduct of local government elections. The primary function of the Legislative Services Department is supporting the legislative matters and decisions of Council, retention of agreements, Land Title documents, records management, FOI management, and items requiring secure storage in the vault.

The Legislative Services Department is the communications link between Council and other City Departments and the general public, providing assistance and advice to citizens with respect to Council/Committee processes, reporting procedures and decisions. Legislative Services consists of the Deputy Corporate Officer, Committee Clerk, Records Coordinator, Receptionist and Secretary/Receptionist.

HIGHLIGHTS of 2014 Administration of the 2014 Municipal Election process. Hiring new Records Coordinator following retirement of previous Records Coordinator, and implementation of the new Electronic Records Management system throughout the organization. Council Committee Restructure project was completed and implemented early in 2014.

OUTLOOK for 2015 Continued support of Director of Corporate Services in the legislative requirements as outlined in the Community Charter and implementing updated efficient processes as they arise. Continuing with the implementation of the Electronic Records Management System (ERMS) with Divisions. Management of an increasing number of FOI Requests. Increase to budget is due to software maintenance contract fees in the amount of $26,400 being reallocated from Information Services budget to Legislative Services.



COMMUNITY DEVELOPEMNT GENERAL PURPOSE Community Development is the umbrella for several departments engaged in the development process and realization of the City’s growth strategy as outlined in the Official Community Plan (OCP). These departments include Current Planning, Long Range Planning and Sustainability, Building and Inspections, Economic Development and Tourism (including the Municipal and Regional District Tax funds).

HIGHLIGHTS of 2014 Community Development staff provide all reporting and support services, overall project coordination and ensure the successful integration of all of the Departments within the Division. 2014 saw the implementation of a new organizational structure, approved as a result of the Core Service Review undertaken in 2012/13. This includes the creation of an Economic Development Planner position and the reconfiguration of duties between Current Planning, Long Range Planning and Economic Development.

The specific project highlights for 2014 are contained within each Department's description.

OUTLOOK for 2015 Growth and development in the City Centre Neighbourhood Plan area, adopted neighbourhood plans and neighbourhood centers are the priority for the city, as embodied in the Official Community Plan. Economic Development is a key priority for the entire division. Efforts will continue to improve the development approval process and reduce costs. In addition, the Division will be completing the Parks Master Plan and associated Development Cost Charges bylaw, as well as the update of the Airport Master Plan.

BUILDING AND INSPECTIONS PURPOSE Building and Inspections is a department of the Community Development Division and is responsible for the administration and enforcement of the B.C. Building Regulations and other applicable development regulations. The Department is primarily responsible for the review and issuance of building permits, field reviews and inspections of construction projects, and general assistance to the Citizens of Vernon. The regulatory framework is contained in Building and Plumbing Bylaw #4900. This Department is also responsible for Business Licensing.

HIGHLIGHTS of 2014 Construction activity was steady in 2014, exceeding forecasted projections and the activity levels of 2012 and 2013. Significant efforts were dedicated to the development and adoption of a new Business License Bylaw and implementation of the Tempest Business License Module. The Department also coordinated an updated Community Wildfire Protection Plan, and is drafting subsequent bylaw amendments for Council's consideration.

As of October 31, 2014, building permit values were at $78,763,000, up considerably from both the year end total of 2013 ($50.5 million) and 2012 ($62.3 million). New residential units are also up from previous years at 201 thus far in 2014, up from a total of 134 new units in 2013 and 142 units in 2012.

3,129 business licenses have been issued as of October 31, 2014. A total of 3,265 business licenses were issued in 2013. While this appears to be a drop, it reflects the new Business License Bylaw which no longer requires a license per the number of professionals in a given office or establishment (e.g. realtors, hair stylists, etc.). Considering this, business licenses are up slightly from 2013.

OUTLOOK for 2015 2015 is expected to see a continuation of the slight and steady increase in construction seen in 2014. Business Licenses are projected to remain steady with no drop in numbers or revenue from 2014.

CURRENT PLANNING PURPOSE

Community Development Services



Current Planning is responsible for the implementation of municipal bylaws and policies related to the planning and sustainable growth of the community. The primary responsibilities of the Department include residential land use planning and related policy development, subdivision, rezoning and development permit applications, variance applications, neighbourhood planning, affordable housing, heritage planning and community outreach. The Department works with all City divisions and regional partners in the delivery of these services. Transportation Demand Management initiatives and environmental initiatives are also funded through this budget.

HIGHLIGHTS for 2014 The Planning Department underwent a reorganization in 2013 as a result of the Core Service Review. Current Planning was created to administer all aspects of residential development, affordable housing, heritage and environmental planning. The Current Planning Department worked closely with Long Range Planning on the review of the Official Community Plan and other growth management initiatives. In addition, a number of policy and bylaw revisions pertaining to affordable/attainable housing and secondary suites were explored.

OUTLOOK for 2015 Year-to-date housing starts are up slightly from 2013 and it is expected that this will continue into 2015. Efforts continue to streamline the development approval process and to reduce costs to the developer, particularly for infill and development in the City’s target redevelopment areas, as well as development in the adopted neighbourhood plan areas in the Hillside Residential and Agricultural District. Current Planning will also provide support to Economic Development as the new Economic Development Planner is integrated into the approvals system.

TDM Projects and funding are also included in this budget, including school and staff travel planning, Bike to School/Work Week, Clean Air Day, transit promotion and Carpool Week.

Environmental Projects include all manner of community outreach, events such as Environment Week, the boulevard tree program and other related initiatives.

LONG RANGE PLANNING AND SUSTAINABILITY PURPOSE Long Range Planning is responsible for the development of the Official Community Plan (OCP), neighbourhood plans and other growth management initiatives. The Department actively engages all sectors of the community in the development of these plans and policies. The Department also manages OCP amendment and boundary extension applications. Sustainability initiatives and the City’s contract with the Social Planning Council is also administered through this Department.

HIGHLIGHTS of 2014 Following the transfer of local parks responsibility on January 1, 2014, the Parks Master Plan process was initiated. Consultation began in March and was completed in September, with a draft plan to be completed by November. This process will continue into 2015. The Predator Ridge Neighbourhood Plan was adopted in 2014. The OCP was further refined, as per Council's direction, and is expected to be adopted by November 2014. The process for the Airport Master Plan was initiated in 2014, as was direction for greater corporate sustainability within the City of Vernon.

OUTLOOK for 2015 The Parks Master Plan process is expected to continue for much of 2015, including a focus on the development of the Parks DCC Bylaw. The Airport Master Plan, initiated in 2014, is targeted for completion in 2015, which will provide detailed direction for future development on the airport lands. An Integrated Community Sustainability Plan is targeted to start in 2015 to build on the sustainability focus of the OCP. 2015 will also be a year of implementation of existing plans, primarily the City Centre Neighbourhood Plan, Waterfront Neighbourhood Centre Plan and the Parks Master Plan. Development of a Corporate Sustainability Plan will also continue.

ECONOMIC DEVELOPMENT PURPOSE The Economic Development Department was created in 2009 and is situated within the Community Development Division. Economic Development is responsible for managing, coordinating and promoting economic development activities within the City of Vernon. The Economic Development Department also oversees the Tourism function for the City of Vernon.

In 2009 an Economic Development Advisory Committee was created to assist in providing strategic direction to the newly created Department. The committee developed an Economic Development Strategy that was adopted by Council in 2010. This document was utilized as the foundation in developing the 2014-15 Economic Development Strategic Action Plan, which was adopted by Council in December 2013.

Community Development Services | Continued


HIGHLIGHTS of 2014 A significant number of projects were completed in 2014 through continued partnerships with the Province of BC, Greater Vernon Chamber of Commerce and Community Futures.

Continued implementation of the Business Retention and Expansion (BR&E) Program and the Business Walks Program. The BR&E Program was piloted by Vernon in 2010 in conjunction with Province of BC and the Economic Development Association of BC. The BR&E Program has now been implemented in over 80 communities across BC. In 2013, the Economic Development department led a volunteer Business Walks Program that interviewed approximately 170 businesses in Vernon. The 2014 Business Walks Program occurred on October 1, 2014.

The City of Vernon partnered with the Regional District of North Okanagan to create a searchable Employment Lands Inventory. In 2014, the City of Vernon and the Regional District began phase two of the project, which is the creation of an employment lands action plan with the goal of facilitating additional job growth within the region. The project is anticipated to be complete in Spring 2015.

Economic Development staff began presenting to foreign investors in Vancouver in 2014. Staff present quarterly at the Provincial Nominee Program information sessions and have generated significant interest as a result. Several groups have since traveled to Vernon to further discuss a variety of business opportunities. Staff have also co-hosted larger groups of foreign investors in conjunction with the Province of BC’s Ministry of International Trade.

Staff continued to promote Vernon investment opportunities at events such as the International Shopping Centre Conference, the BC Real Estate Show, the Global Petroleum Show and the Fort McMurray Spring Home Show.

The City of Vernon received the 2014 Open for Business Awards from the Small Business Roundtable, which was announced at UBCM in September 2014.

OUTLOOK for 2015 There will be a significant shift in Economic Development in 2015 with the addition of the Economic Development Planner position in December 2014. This will create a dedicated planning function to assist businesses through the development process. This will allow the Economic Development Department to continue to focus on Business Retention and Expansion initiatives, while directing additional resources towards investment attraction and projects. The 2014-15 Economic Development Strategic Action Plan sets the direction and goals for the function, while the Economic Development Advisory Committee provides advice and support to ensure the function is a success.

TOURISM – CITY PURPOSE Tourism Services is responsible for marketing, advertising and promotion; assisting tourism businesses; working with the media and performing community outreach. Tourism Services oversees the operation of the year round Visitor Centre and all of its activities.

HIGHLIGHTS of 2014 A key priority identified within the 2010-15 Vernon Tourism Development Plan was to centralize the year round South Visitor Information Centre and the seasonal North Centre. This strategic objective was achieved with the opening of the Visitor Information Centre (VIC) adjacent to the Civic Arena in June 2014. As of the end of August 2014, there was a 12.8% increase in visitorship to the VIC. August 2014 was the strongest year on record for the collection of the MRDT, at approximately $90,000 for that month alone, a 19% increase for the month over August 2013 and a 25% increase year to date over 2013.

Strong partnerships continue to grow with local stakeholders as well as other tourism organizations in adjacent communities. This collaboration has benefited not only businesses and organizations but visitors traveling through the region. New policies that have been created that provide opportunities for industry stakeholders to access co-op funding for marketing have gained interest and will continue to grow in 2015 (this includes joint print media and other initiatives that bring industry stakeholders together to strengthen marketing efforts). Key research and performance improvement recommendations were undertaken in areas of social media performance and online analytics; and baseline statistics were collected from eight accommodators providing in depth information on visitor behavior.

OUTLOOK for 2015 The role of the Tourism Manager will continue to evolve with a focus on marketing initiatives and continued emphasis on creating partnership opportunities. Resources will focus on digital advertising, travel media, social media, informational videos and interactive mapping. In conjunction with industry partners, research programs and initiatives have been developed and implemented and will continue in 2015. The centralization of the Visitor Information Centre (VIC) in 2014 provides a renewed opportunity to maximize tourism resources.



TOURISM – MRDT PURPOSE The Municipal & Regional District Tax (MRDT) was implemented in March 2010. MRDT funds collected must be used to market Vernon and its visitor experiences with the cumulative goal of increasing overnight stays in Vernon. Expenditure of funds are overseen by the Tourism Advisory Committee who approve the annual marketing plan and identify projects and programs which promote Vernon as a tourist destination and support local tourism providers.

HIGHLIGHTS of 2014 Revenues collected from the MRDT continue to increase year over year. At this time, 2014 year to date is 28% over 2013. The funds continue to be utilized for a variety of marketing activities, including a major Spring Campaign in several BC and Alberta markets. As technology advances, staff continue to shift efforts through social media and online advertising opportunities.

The primary project for 2014 was gaining support from accommodators to go forward with a renewal application to the Province of BC for the continued collection of MRDT funds. The renewal application was submitted with 69% of the properties and 89% of the rooms in support of the renewal (51% is the required minimum for both properties and rooms). Hotel Room Tax Bylaw Number 5524, 2014 (requesting the imposition of a tax on accommodation under the Provisions of the Provincial Sales Tax Act) was adopted by Council on October 27, 2014.

If successful, the MRDT will be secure from 2015-2020.

OUTLOOK for 2015 2014 revenues collected from the MRDT are anticipated to be the highest on record. However, tourism visitation is dependent on a variety of factors including weather and economic conditions in key markets throughout BC and Alberta. As the MRDT fund is a zero- based budget, revenue estimates are conservative in nature. Any surplus revenues that are achieved are transferred to the MRDT Reserve account.

2015 efforts will be focused on additional marketing and partnerships programs. Staff will also be proposing to the Tourism Advisory Committee that funds be allocated to Sport Tourism to assist in driving room nights in shoulder seasons. This budget line item will be finalized later in 2014.



ENGINEERING PURPOSE Engineering & GIS Services are responsible for the implementation of municipal services and bylaws related to infrastructure planning for the Capital Works Program and development works as well as provision of GIS services. The Division is also responsible for management of budgeting and construction of the Capital Works Program. The Division works closely with many of the other Divisions to provide these services in an efficient and timely manner. The mandate of the Engineering & GIS Division is to hold paramount the safety, welfare and quality of life of the public and the protection of the environment through fiscally responsible management of public infrastructure.

HIGHLIGHTS of 2014 -The City completed stage III of the Liquid Waste Management Plan and submitted to the Province for approval. -The Engineering & GIS Division completed the first 3 of 4 stages of the Sustainable Infrastructure Investment Plan; including the Integrated Transportation Framework. -Successful provision of sanitary sewer to the Beachcomber Bay and Adventure Bay area. -Working with several areas in the Okanagan Landing to initiate Sewer Local Area Service Bylaws. -Draft of the Master Transportation Plan will be completed.

OUTLOOK for 2015 -Continue supporting the Official Community Plan (OCP) priorities through implementation of the Strategic Infrastructure Investment Plan (SIIP) and the implementation of the Transportation Plan. -Complete stage 4 of 4 stages of the Asset Management initiative which is the Stormwater Utility Feasibility Study. -Implement the Transit Future Plan, Pedestrian and Bike Master Plan, Road Network Plan and Transportation Demand Management (TDM) initiatives such as school travel plans, and construction of missing connections. -Implement the Liquid Waste Management Plan pending Provincial approval. -Support further sewer extensions through local service areas and municipal fees. -Continue supporting the revitalization of neighbourhood centers through the capital program by replacing failing and failed infrastructure as per our 4 year Capital Program priorities. -Continue implementing transportation safety initiatives through joint ventures with ICBC. -Implement the 2015 Capital Works Program as approved by Council and complete the 2014 Capital Works Program.

Engineering/GIS Services



GIS PURPOSE The GIS Department maintains and provides spatial based information to City staff, consultants, government and public organizations as well as the public to assist them in making informed decisions. The GIS Department also provides development and support of the CityWorks Maintenance Management System, a software application used to generate and process service requests and work orders for the Operations Division. The GIS Department has been a major component of developing the Sustainable Infrastructure Investment Program (SIIP). GIS will also support the Sustainable Infrastructure Investment Plan by continually integrating asset condition information into the completed program, adding new infrastructure and deleting assets as they are upgraded or replaced. Having an accurate inventory of all of our linear and nonlinear assets through GIS is the foundation for a Sustainable Infrastructure Investment Plan.

HIGHLIGHTS of 2014 GIS provided input to the Engineering Dept for the 2015 Capital Planning Process and the Strategic Infrastructure Investment Plan (SIIP). -Continued progress to update and maintain spatial data in GIS format -Continued increase in the use of GIS support for various City functions – including Neighbourhood Plans, SIIP, Parks Master Plan, School Travel Plans, Ped and Bike Master Plan, and Transportation Master Plan Update including the Transit Plan. -Continued growth in the use of CityWorks - supporting Service Requests and Work Orders for Operations related functions

OUTLOOK for 2015 1. Data capture, maintenance, retrieval and analysis2. GIS training and support3. CityWorks support4. RDNO coordination 5. Maintain SIIP

Engineering/GIS Services | Continued


FINANCE – ACCOUNTING PURPOSE The Financial Services - Accounting Department is responsible for all matters of financial administration for the City of Vernon, specifically: -Billing and revenue collection of City services and revenue sources -Payment for goods and services -Cemetery administration -Safekeeping of securities -Investments of reserved funds -Risk management claims administration -Grant funding -Financial planning and reporting -Debt administration -Safeguarding Assets

HIGHLIGHTS of 2014 - The 2014 budget was awarded the GFOA Distinguished Financial Reporting Award. - Launch of E-billing in August 2014 for utility billing has proven to be successful with over 100 customers participating as of Sept 1, 2014. - Launch of a new accounts receivable system is scheduled for January 1, 2015 and will improve online access for several customer groups. - A reorganization of management duties has seen the elimination of the Senior Accountant position, which has been replaced with a Financial Analyst and additional clerical support in purchasing to support the additional activities relating to parks and recreation.

OUTLOOK for 2015 A structure change within Financial Services designed to strengthen reporting systems was implemented in the last quarter of 2014. Work will continue throughout 2015 to streamline and improve internal systems, and increase efficiency.

FINANCE PROCEUREMENT SERVICES PURPOSE Procurement Services is a department within Financial Services. This team provides professional, responsible and cost effective procurement services which include; acquisition of goods and services, asset investment recovery and the management of Central Stores. Services are provided to all user groups across the organization and support both Capital & Operational requirements.

HIGHLIGHTS of 2014 Procurement Services experienced a significant increase in demands on staff time and procurement activity. With Recreation Services coming on board January 2014, the first quarter had the Procurement team spending a considerable amount of time on Vadim system training, process instruction and coordinating / amalgamating RDNO agreements in with CoV agreements. The effort involved is not to be underestimated. Procurement seized the opportunity to optimize existing relationships with CoV vendors, cut costs and build efficiencies for Recreation Services. Examples include removal of unnecessary middlemen, improved freight terms, use of Central Stores inventory and consistent competitive quoting process. PO Activity increased from the previous year in excess of 40%. PO Commitment increased from previous year (Jan - Aug) approximately 80%

Central Stores continued to proactively manage inventory through continuous “right sizing”, focus on demand forecasting, turnover, quality control and obsolescence avoidance. Central Stores has strived to provide excellent customer and value added service. Stores successfully worked with Utilities and Public Works in reviewing blue prints, establishing takeoffs for materials planning, ordering, tagging and staging several projects. Supervisors appreciated the organized structure of project staging services as it guaranteed all materials would be available, tagged, secured and ready for the project start date. Project staging services will become a common procedure for all upcoming projects.

Inventory value has been reduced substantially over the last 4 years while maintaining consistent business activity.

Financial Services



OUTLOOK for 2015 For 2015 Procurement will continue the use Key Performance Indicators to monitor/ analyze corporate purchase behavior and seek out cost effective / efficient opportunities, standardization and provide value added services to its customers. Central Stores will re-purpose its floor space to add high demand goods that previously were not inventoried due to space restrictions. The Corporation will review and implement, as deemed appropriate, recommendations arising from the Auditor General for Local Government (AGLG) procurement audit. Costs if any are not known at this time and are not included in this budget.

FISCAL SERVICES – GENERAL PURPOSE This Department contains the grouping of accounts that relate to financing transactions and capital transactions. Revenues and debt transactions relating to the Fortis BC Gas LILO agreement, as well as interest payments on short term borrowing and interest payments on prepayments of tax and interest paid on security deposits relating to development. Foreign exchange gains and losses when incurred, and losses on disposal on capital assets are recorded in this group of accounts for non utility transactions.

HIGHLIGHTS of 2014 The current environment of low interest rates continues a trend of lower interest costs on our debt renewals.

OUTLOOK for 2015 2015 reflects the last renewal of the debt financing for the BC Gas Lilo Agreement, at a lower rate of interest. This will translate into a change in the underlying structure of the financing transaction, as transfers to reserve are still being made well past the projected draws on reserves to maintain the revenue side of the debt financing. Restoration of a provision for temporary borrowing adds some flexibility for the City.

COLLECTIONS TO/FROM OTHERS PURPOSE This group of accounts exists to allow for collection of taxes for other taxing authorities from our jurisdiction, and the remittance of the collected taxes to the other taxing authorities according to the terms of the requisition. Other taxing authorities include;

-Provincial School Tax -Regional District Taxes -Regional Hospital District -Okanagan Regional Library -Municipal Finance AuthorityThis range of accounts is, in effect, a flow through.

HIGHLIGHTS of 2014 The change for 2014 was the transfer of Parks services taxation, from the Regional District to the City of Vernon.

OUTLOOK for 2015 These revenues and the associated expenditures are not within the control of, or subject to approval, from Vernon. The change for 2015 is the transfer of Recreation services taxation, from the Regional District to the City of Vernon. The corresponding reduction of taxation from the Regional District, levied to Vernon residents on the basis of improvements only is the combined amount of $2,175,020.

Financial Services | Continued


TAXATION PURPOSE Taxation is the non service fee, and grant revenue requirement to fund the City services authorized by Council. HIGHLIGHTS of 2014 Taxation revenues are at risk each year from taxpayers appealing tax assessments, as well as tax shift, tax payers appealing to have their assessment classification changed to gain the benefit of a lower mill rate for the new classification. The City must assess these types of adjustments into taxation in the following tax year. The distribution of the noted changes are as follows: Non Market Change Operating 1.9% Capital Recreation Transfer Residential 576,430 350,071 369,520 1,448,996 Utility 4,347 6,553 6,917 23,572 Light Industrial (6,780) 8,615 9,094 36,407 Business 38,810 186,799 197,176 763,067 Recreation/Non Profit (50) 2,234 2,358 9,772 Farm (387) 60 63 247 Totals 612,370 554,332 585,128 2,282,061 OUTLOOK for 2015 Non market value growth in tax revenues from new development are estimated at $ 612,370 for 2015. An overall operating budget increase of $ 554,332. An approved annual cumulative infrastructure replacement program is included at 1.9% amounting to $ 585,128 is continued with the 2015 Financial Plan. Separation of the Capital Infrastructure Levy on the tax notice, which commenced in 2013, will highlight the renewed focus on infrastructure sustainability. PUBLIC TRANSIT CONVENTIONAL PURPOSE The conventional transit system operates 9 conventional buses within Vernon and Coldstream. All buses in the system are 1999 Dennis Dart's and are scheduled for replacement in 2017. HIGHLIGHTS of 2014 Completion of a 5 year transit plan and a fare review in the fall of 2013 concludes the short term transportation plan. Transit hours were made available in the fall of 2013 to augment Vernon transit service. OUTLOOK for 2015 The 25 year transit master plan was conducted to be completed early in 2014. The concurrent fare review was delayed and should be implemented in 2016. Use of reserve funds earmarked for transit expansion will drive transit improvements. Higher maintenance costs in the last few years of service of the existing fleet of busses continue to be a cost pressure. Fuel as well plays a factor in increasing costs of the system. A new agreement concerning bus benches will see consistent attention paid to assets whose condition has shown steady decline in recent years. This will be accomplished through an agreement with Venture Training. The restructure of Transit service delivery is planned to be implemented with the new fleet in 2017. The new plan will see a change to a central spine for delivery with feeder routes, moving away from the long looping route system we currently utilize. PUBLIC TRANSIT CUSTOM PURPOSE The Custom Transit service, more commonly known as HandiDart, provides transit service to those with mobility issues. The service is held by the City of Vernon, yet provides service to residents of Vernon, Coldstream and the Regional District. Registration and enrollment in this service is required for users of the system. HIGHLIGHTS of 2014 Launch of a pilot project with BC Transit concerning eligibility requirements for HandiDart is underway and was in operation for 2014. The goal of this project was to ensure users of the system were qualified to use the system. Costs in this area have been realigned by a recent RFP for a transit operator for the Okanagan Valley (Salmon Arm to Peachland). Implementation of a new cost sharing agreement with our regional partners saw a minor change in the allocation of the partners' cost sharing of this service. The 2012 service review examined existing ridership trends and proposed changes in cost allocation for the system. OUTLOOK for 2015 Fleet replacement is occurring at a steady pace with an annual replacement of two vehicles.



GRANTS PURPOSE This Department highlights the donation of funds and in-kind contributions to community groups, or community events. HIGHLIGHTS of 2014 Vernon hosted the 2014 Royal Bank Cup. OUTLOOK for 2015 Vernon's next historic anniversary is December 31, 2017, when Vernon will celebrate its 125th anniversary. Increased funding of Downtown maintenance contributions to the Downtown Vernon Association are reflected in this budget.



FIRE DEPARTMENT GENERAL PURPOSE Vernon Fire - Rescue is responsible for community safety in many ways: Responding to and mitigating emergency situations to protect life and property, minimize damage, injury or loss, and do so as quickly, effectively and as well prepared as possible are the primary goals of fire and rescue services. In non-emergency times, Vernon Fire - Rescue is focusing on awareness and fire and life safety public education, legislative and bylaw compliance and training. More specifically Vernon Fire - Rescue provides: - First Medical Response - Fire suppression, fire inspections and investigations, including Fee for Service Agreements - Road Rescue, motor vehicle incident responses - Public education and community relations, community smoke alarm campaign - Hazardous Materials response and Confined Space Rescue, including Fee for Service Agreements - Emergency Fire Dispatch - Emergency Program and Emergency Support Services management HIGHLIGHTS of 2014 - Construction of Station 3, Predator Ridge Fire Hall, completed end November 2014 - Completion of structural fire protection Fee for Service Agreement for unprotected properties in the Kalamalka Lakeview area for implementation January 1, 2015. - Development of full Response Policy in accordance with 2013 Core Review resolutions for consideration of Council first quarter of 2015. - Full review of Fire Prevention Bylaw and other related bylaws to align with 2014 Community Wildfire Protection Plan (CWPP) anticipated to be completed December 2014 for consideration by Council first quarter of 2015. - Continued overtime reduction strategies, cost containment and sustainable deployment strategies - Management of the Fire Training Centre (FTC) including facility improvement project management as approved by the FTC Policy Board - Continued participation in the provincial Smoke Alarm Campaign, aimed at ensuring every household has a working smoke alarm - Maintenance of Fee for Service Agreements for some regional services including Hazardous Materials, Confined Space and Dispatch OUTLOOK for 2015 The focus for Vernon Fire - Rescue in 2015 and beyond is to ensure the department is well positioned to deliver consistent and efficient emergency and public safety services for residents of Vernon. Fee for service agreements, revenue opportunities, along with cost containment and fiscally responsible, sustainable service delivery are the priorities. Fire Prevention activities towards compliance and safety in the community continue, with specific initiatives to implement strategies recommended in the Community Wildfire Protection Plan to reduce the risk of wildfire in high hazard neighbourhoods. FIRE FIGHTING PURPOSE This grouping of accounts represents the costs of firefighting forces made up of both career and paid-per-call firefighters operating out of Station 1 Downtown, Station 2 Okanagan Landing and Station 3 Predator Ridge. Revenue streams for this cost centre include fee for service agreements and services provided to other agencies and levels of government. HIGHLIGHTS of 2014 - Review of the First Medical Responder program protocols for incident types and redundancy - Mitigation of arson related suspicious fires, some large scale incidents including the Kin Race Track grandstand fire and the Okanagan Growers fruit bin fire - Predator Ridge fire hall construction, preparation for integrating operations of the hall into the paid-per-call model, and review of apparatus deployment - Structural fire protection Fee for Service Agreement initiated for Kalamalka Lakeview properties

Fire Rescue Services


- In kind dispatching services initiated for other City divisions, including Bylaw, Community Policing and Information Services - Paid-Per-Call fall recruit to maintain roster number in anticipation of Station 3 Predator Ridge construction completion - Smoke Alarm Campaign and duty crew fire inspections, public fire and life safety education opportunities maintained throughout the year, including Fire Prevention Week. - Certified training maintained, as well as task and drill, on line theory training and regular practice for career and paid-per-call firefighters completed as per the annual training plan. - Completion of Mobile CAD capabilities for VFRS apparatus OUTLOOK for 2015 Focus for the upcoming year is to continue implementing operational efficiencies, continue streamlining deployment based on geographical considerations and risk management factors and achieve economy of scale in training the integrated firefighting force to a consistently high level. Adjustments will be made to the tier structure to accommodate deployment for Station 3, Predator Ridge, and public education efforts will include interface awareness and mitigation in accordance with the Community Wildfire Protection Plan. EMERGENCY MANAGEMENT PURPOSE The pro-rated cost sharing mechanism to fund the program will remain in effect, making the program viable and offering economies of scale that simply would not be possible outside of a region-wide inter-municipal structure. HIGHLIGHTS of 2014 2014 is proving to be a very busy year for NOEM staff. As in previous years, freshet season presented many challenges in Lumby and in the neighboring Electoral areas, notably Area's D, E and F. This included flash flooding, flooded houses, overland flooding, debris flows, blocked waterways, rapid erosion and dam breaches, as well as the largest Gabion deployment in the history of the BC Interior. Emergency Support Services (ESS) has been very active this year (July was a record month), with 49 volunteers generously donating 458 hours to assist 306 people in the Region, displaced by fires, floods and Hazmat incidents. Staff also coordinated a number of highly successful training, planning and preparedness initiatives, as well as updating the Inter-municipal Emergency Operations Service Agreement. Once passed, the revised agreement with carry the Regional Emergency Program through until 2020. OUTLOOK for 2015 The operational tempo for North Okanagan Emergency Management (NOEM) is accelerating each year, with often overlapping emergency incidents. This continuous growth is directly attributable to climate change, aging infrastructure, continued construction in, and development of, the urban-interface, and federal and provincial cutbacks (and the resultant downloading onto local government). Finally, the regional fire service model keeps the number of incidents requiring NOEM staff participation and response disproportionately high. Within this complex operating context, the need for training and innovative emergency management planning and preparedness initiatives has skyrocketed. The budget presented herein represents the best balance possible of the operational demands of the Program and the fiscal reality of our community. The NOEM staff looks forward to a safe and successful 2015! FIRE TRAINING CENTER PURPOSE This grouping of accounts is for managing the Regional Fire Training Centre (FTC) and includes the proportionate shares from Regional partners showing as Inter-Municipal Recoveries. Revenue from outside customers and participant user fees is reflected in the Fire Training Fees and Internal Revenue reflects the City of Vernon's share. Overall management of the FTC is in accordance with the Inter-Municipal arrangements, and initial annual budget approval mechanism is through the representatives on the FTC Operations Committee and Policy Board. In addition to the annual operating expenses, the participants reserve, held by the City, has been allocated over time, to fund facility improvement projects authorized by the Policy Board. HIGHLIGHTS of 2014 The focus of the current year has been economically viable and sustainable fire training costs for all participants. Outside users of the facility continue to provide additional revenue to offset expenses. Several facility upgrades occurred, in accordance with input from the Fire Training Centre Operations Committee and with funding approval of the Policy Board. OUTLOOK for 2015 The Fire Training Centre will continue to provide standardized training locally and to realize an economy of scale for fire training costs for all participants. Outside customers and non fire department users are an additional source of revenue and the shared used of the facility amongst the partners is cooperative and beneficial. It is anticipated revenue and expense items will remain consistent with prior year and facility improvement projects will proceed with funding from the reserve, in accordance with direction provided by the Policy Board.

Fire Rescue Services | Continued


HUMAN RESOURCES – GENERAL PURPOSE The Human Resources Division is responsible for Citywide internal and external staff recruitment and retention, organizational training and development, payroll and benefits administration, employee and labour relations services including: collective bargaining, management of exempt and union compensation plans, and maintaining awareness of, and compliance with, local, provincial, and federal labour laws. HIGHLIGHTS of 2014 The HR Division continues to focus on delivering Council's Strategic Priorities. A focus is to build upon the existing culture and to nurture the development of a contemporary and efficient learning organization. Successes include: -Completed 5 year CUPE Agreement within Council budget direction. -Successful transition of water employees to Regional District of North Okanagan (RDNO). -Training and Development (Corporate, Occupational Health and Safety) including: -Due Diligence Training -Silica Exposure Training -Rigging Training -Occupational Health and Safety -Increased Site Visits -Corporate-wide Ergonomic Assessments -Multiple Recruitment Successes -Inaugural Staff Appreciation Breakfast OUTLOOK for 2015 The strategic deliverables that will impact the Human Resources Division budget for 2015-2016 include the development of a Corporate HR Plan (which includes performance management planning, succession planning, and recruitment and retention), the development of a comprehensive training development program, and review and preparation for collective bargaining (IAFF). HUMAN RESOURCES – CORPORATE PURPOSE The Human Resources Division is responsible for City wide internal and external staff recruitment and retention, organizational training and development, payroll and benefits administration, employee and labour relations services including: collective bargaining, management exempt and union compensation plans, and maintaining awareness of, and compliance with local, provincial, and federal labour laws. The Human Resources Corporate budget captures recruitment, training and staff development, retiring allowances, severance payments. The Human Resources Corporate budget also encompasses aspects of organizational development at the City of Vernon. This is a deliberately planned organization-wide effort to increase the City of Vernon’s effectiveness and efficiency, as well as to enable the City of Vernon to achieve its strategic goals. The City of Vernon is desirous to develop processes, systems, and structures to advance the organization. This focus on organizational development will position the City of Vernon to better absorb disruptive technologies, shrinking or exploding market opportunities, and ensuing challenges and chaos. This focus is forward looking and promotes organizational readiness to meet change. The ability to stabilize costs are an added benefit of a focused strategic design. More specifically, as we position ourselves as an Employer of Choice we will be better able to deal with recruitment and retention, labour shortages, and an aging work force. HIGHLIGHTS of 2014 As per HR General Budget Highlights.

Human Resources Services



OUTLOOK for 2015 The strategic deliverables that will impact the Human Resources Division budget for 2015-2016 include the development of a Corporate HR Plan (which includes performance management planning, succession planning, and recruitment and retention), the development of a comprehensive training development program, and review and preparation for collective bargaining (IAFF). Additionally, to develop a culture within the City of Vernon that positions and readies the City to become an Employer of Choice, it is important to strengthen capacity within the organization. Therefore, additional strategic deliverable that will impact the Human Resources Division budget for 2015-2016 is the development and implementation of the Strategic Capacity Development Program. OCCUPATIONAL HEALTH AND SAFETY PURPOSE The focus of the Occupational Health and Safety (OH&S) function is to ensure the City is in compliance with WorkSafe BC (WSBC) Regulation and Industry best practices. This Department is responsible for developing, maintaining, and improving the City Safety Management System (SMS) which encompasses safety programs such as Confined Space Entry, De-energization and Lockout, Workplace Inspection, Working Alone, Electrical Safety, and Excavation Safety. This Department also manages occupational injury claims (WSBC), as well as non occupational injuries which involves implementation of modified graduated return to work (MGRTW) plans. These plans benefit the organization by reducing WSBC insurance premiums and sick time benefit usage. HIGHLIGHTS of 2014 The City of Vernon passed an external COR audit in September 2013 for both the Safety Management System (SMS) and Stay at Work/Return to Work (SAW/RTW) programs. This resulted in the City's eligibility for a 15% incentive cheque from WSBC, 10% for the SMS, and 5% for the SAW/RTW. This year several safety initiatives were implemented for various departments within the Corporation. This includes blue tooth communication headsets for Parks/Utilities, industrial cooling fan, foot pedal equipment actuators, PAPR welding respirator for Fleet, supersonic air knife for Operations to assist with excavating utilities, and upgraded safety shelving for Stores. The City also dedicated 1076 person hours as of September 1, 2014 to safety related training for City workers across the Corporation. OUTLOOK for 2015 The focus for Occupational Health and Safety in 2015 is to continue to implement and revise mandatory safety training and programs to ensure the City maintains the Certificate of Recognition (COR) through WSBC and the BC Municipal Safety Association (BCMSA), which was achieved in December 2011. Continuing to maintain COR will ensure incentive cheques continue to be received from WSBC. CERTIFICATE OF RECOGNITION PURPOSE In December 2011, the City of Vernon participated in an audit of its Safety Management System (SMS) as part of the WorkSafe BC (WSBC) Certificate of Recognition (COR) program. On successfully completing of the audit, the City was issued COR certification and became eligible for a 10% rebate based on insurance premiums paid to WSBC. In early 2012, a recommendation to Council asked that the COR rebates received by the City of Vernon from WSBC be maintained in the Occupational Health & Safety (OH&S) budget for use in future safety initiatives. This resolution was passed. HIGHLIGHTS of 2014 The City of Vernon passed an external COR audit in Sept 2013 for both the Safety Management System (SMS) and Stay at Work/Return to Work (SAW/RTW) programs. This will result in the City being eligible for a 10% rebate for the SMS and a 5% rebate for the SAW/RTW portion of the audit. OUTLOOK for 2015 This budget will be used to fund safety initiatives across the organization directly related to worker safety and organizational compliance with WorkSafe BC policy and regulation. Possible projects and budget for the upcoming year include; Asbestos Inventory $20000, Arc Flash Incident Energy Analysis $15000, Fall Protection Rooftop Assessments $10000, Lockout Equipment Standardization $8000, Incident/Inspection Tracking Software $8000, Health & Wellness Initiatives $5000, Employee Family Assistance Program $20000, Equipment Operator Training Program $25000, Confined Space Program Review $5000, Workplace Violence Risk Assessment $16000, Workplace Hazardous Material Information System (WHMIS) changeover to Global Harmonized System (GHS) $5000, Occupational Noise Survey $5000

Human Resources Services | Continued


OPERATIONS GENERAL PURPOSE The Operation Services Division manages, directs, and coordinates the activities of the Public Works, Parks, Airport, Utilities (including Sanitary, Storm & Water), Fleet, Building Services, Vernon Water Reclamation Centre and Spray Irrigation departments. HIGHLIGHTS of 2014 Continued implementation of asset management strategy and preventative maintenance program. Emphasis on finding energy efficiencies through comprehensive studies and facility modifications. OUTLOOK for 2015 The focus of this area in 2015 will be to continue to provide a high level of service to the residents of the City of Vernon. There will be an emphasis on finding operational efficiencies to minimize increasing costs necessitated by expanded infrastructure and market conditions relating to contracts. FACILITIES GENERAL PURPOSE Under the direction of the Building Services Manager, this Department is responsible for the operation and maintenance of all City facilities and attached grounds, including: City Hall, City Yards, Community Services Building, Fire Halls 1&2, RCMP Station, Water Reclamation Center, Parkade, and Tourist Information Booth as well as many rental buildings. This Department also oversees energy management for the City of Vernon. The Building Services Department is responsible for ensuring that the City of Vernon takes a lead role in supporting the mandate of sustainability, including educating staff, promoting energy conservation and ensuring that City facilities are operated and maintained as efficiently as possible. In addition to general maintenance and operation of the City facilities, the Department will also provide ‘in-house’ construction services for renovations and modifications within city owned buildings. HIGHLIGHTS of 2014 -Initiated buildings conditions reports for key City facilities. -Installation of solar domestic hot water systems for both the RCMP building and Fire Hall #1. -Energy Audit of Rec Center and Kal Tire Place. -Complete renovation of the Central Visitor Center. -Renovation of the RCMP fountain. -Completion of upgrade to RCMP fire alarm system. -Continued lighting retrofits throughout City facilities to improve energy efficiency. -Implementation of energy conservation measures in City facilities. -Ongoing updating of Preventative Maintenance (PM) program for Building Services. -Renovation to operations wash bay -Preliminary design for enclosing part of parking canopy OUTLOOK for 2015 Maintain our current level of service for 2014. This Department will continue to research and implement energy efficiency initiatives and focus on our sustainability plan in 2015. We plan to implement many of these through incentive funding available from the utility providers as well as using available funds from the Carbon Tax Reserve. FLEET SERVICES PURPOSE Fleet Services is responsible for the operation and management of the City fleet. Services provided: -Purchase, maintenance and repair of city owned vehicles and equipment including Fire Rescue, Parks, Recreation Services vehicles. (Fleet - 205 vehicles, with an additional 24 Stationary generators and other related small power tools.)

Operations Services



-Process an average of 2600 repair and maintenance work orders. -Provide Vehicle Inspection Services - in accordance with Commercial Vehicle (CV) inspection regulations and National Safety Code (NSC) compliance. -Provide registration and insurance for the City of Vernon fleet. -Supply and management of fuel services for City and Fire Rescue vehicles. -Supply welding and fabrication services for all city departments. -Manage the VHF radio and repeater system. -Provide equipment training and certification. -Provide support services - all departments in the repair of miscellaneous small tools and equipment. -Supply aircraft fueling services - after regular business hours as well as backup for Airport staff absence. HIGHLIGHTS of 2014 2014 - Fleet vehicles or equipment purchased: - Public Works - 2015 Ford Altec Aerial Device (replace) - Public Works - 2014 Stainless Steel Spreader (replace) - Parks - Kubota Compact Backhoe Loader (replace) - Parks - Equipment Tilt Trailer (replace) - Parks - Toro Wide Area Mower (replace) - Parks - Kubota Zero Steer Mower (replace) - Rec Services - Cargo Events Trailer (new) - VWRC - Biosolids -28' End Dump Trailer (replace) Fleet Reduction - (2) vehicles eliminated from Community Policing - (1) vehicle eliminated from Building Inspection Fleet Services provided the following services: - Implementation of fleet idle reduction strategies and driver awareness. - Installation of GPS in Fire Rescue vehicles. - Continued monitoring of implemented Geotab GPS system in (133) Fleet vehicles and equipment. - Annual fire apparatus pump testing for Vernon, Silver Star and Armstrong Fire Departments. - Support service to Fire Training Centre - equipment. - Provided comprehensive Fleet maintenance services to the Recreation Services vehicles and equipment. OUTLOOK for 2015 The focus for 2015 and 2016 is to continue to reduce the City Fleet carbon footprint Greenhouse Gas (GHG) emissions and fuel consumption with anti-idling initiatives including the Geotab Global Positioning Systems (GPS) systems in all city owned vehicles and equipment. Continue to purchase right size vehicles with each new acquisition and follow Vehicle Replacement Policy for life cycle replacement. PARKS LOCAL PARKS PURPOSE The City is responsible for the care, control, and funding of local parks within the City’s jurisdiction. Included in this department is partial funding for Manager of Public Works (15%), the Parks Foreman (60%), as well as a funding allocation required for general items that can’t be directly charged to individual parks. Vehicle charges for the Parks Foreman position and insurance and permit fees are also included in this department. HIGHLIGHTS for 2014 In 2014 the City implemented a new service delivery model for local and sub-regional parks consistent with the Greater Vernon Sub-Regional Parks and Trails Service Agreement. OUTLOOK for 2015 The completion of the Parks Master Plan In 2015 will provide clear direction for the City relating to service delivery, asset management, and capital planning. SUB-REGIONAL PARKS PURPOSE The City has been contracted by RDNO to provide parks maintenance services for all sub regional parks located within the City of Vernon as well as Kal Beach and Creekside Park located in the District of Coldstream. The fees and service levels for sub-regional parks maintenance is defined in the Parks Management and Operations Agreement. The agreement is for a three year term commencing January 1, 2014.

Operations Services | Continued


Included in this department is partial funding for Manager of Public Works (15%), the Parks Foreman (40%) as well as equipment charges for this position. Insurance, permit fees and security for all regional parks is also included in this department. HIGHLIGHTS of 20184 In 2014 the City implemented a new service delivery model for local and sub-regional parks consistent with the Greater Vernon Sub-Regional Parks and Trails Service Agreement. OUTLOOK for 2015 Changes in service levels are determined by RDNO. No service changes from 2014 have been identified at this time. Budget change is determined by the Parks Management and Operations Agreement (CPI - All Canada). PUBLIC WORKS PURPOSE The Manager of Public Works oversees the operation and maintenance works relating to Public Works and Parks including roads, sidewalks, street lights, traffic signals, traffic signs, garbage collection, boulevard landscaping and weed control, street trees, snow and ice control and cemetery maintenance. This Department is also responsible for the construction of the ‘in-house’ capital works road and sidewalk projects as well as the operation and maintenance of the Airport. HIGHLIGHTS of 2014 -Completion of road rehabilitation project on Kal Lake Rd from 11th Avenue to Brown Rd -Completion of road rehabilitation project on Silver Star Road from L&A Rd to Blackcomb Rd -Completion of road rehabilitation project on 15th Street from 25th Avenue to Pottery Rd -Completion of road rehabilitation project on Tronson Rd from Scott Rd to Lakeshore Drive -Completion of road reconstruction project on Pottery Rd from 18th Street to 15th Street -Completion of road reconstruction project on 27th Avenue and 35th Street -Completion of the Airport’s runway feasibility study and pavement management study OUTLOOK for 2015 The focus for Public Works in the upcoming year will be to implement the recommendations identified in the Integrated Transportation Framework (ITF). This will include the investigation of alternative road rehabilitation and construction techniques. The focus for the Airport in 2015 will be the completion of the Airport Master Plan. SEWER SERVICES PURPOSE The Sewer Operations General Department is responsible for the administration of the Sanitary Utility account which includes the allocation of wages for management, CUPE B employees, fleet charges, transfer to Carbon Tax Reserve and Common Service allocations. Common Service allocations are charges incurred for the use of Operations Yards and Facilities. HIGHLIGHTS for 2014 Capital Construction projects were completed as per Engineering's request, emergency repairs were completed and daily operation continues. Tronson Lift Stations have now been incorporated into the daily activities for Utilities. OUTLOOK for 2015 Infrastructure investigation will aid in the production a short-term and a future plan on capital projects that may require long term investment. Current work practices will be monitored to explore opportunities for efficiencies in an effort to improve the overall system. STORM SYSTEM PURPOSE Under the direction of the Manager Utilities, this department is responsible for the daily operation, maintenance and repair of Storm infrastructure within the City of Vernon, including storm mains, manholes, culverts, catch basins, creek channels, ditches and storm retention facilities. The department is also responsible for the construction of ‘in-house’ capital works storm projects. In addition to the above, the department is also involved with Infrastructure Asset Management investigation for short-term and future capital programs. HIGHLIGHTS of 2014 Completion of Capital Storm Project on 27 Avenue & 35 Street. Swan Lake - Weir maintenance - shared project with Ducks Unlimited, RDNO and other stakeholders.



OUTLOOK for 2015 Current work practices will be monitored to explore opportunities for efficiencies in an effort to improve the overall system. Long range infrastructure investigation will provide valuable information and produce a future plan on sustaining a reliable Storm system. WATER DEPARTMENT GENERAL PURPOSE Working with representatives from Greater Vernon Water, the Manager, Utilities, oversees the Water Department and is responsible for the daily operation, maintenance and repair of the Water infrastructure (transmission, distribution and storage) which includes watermains, hydrants, valves, residential and commercial services, 18 pump stations and 11 reservoirs; within the City of Vernon and Areas B and C. HIGHLIGHTS of 2014 Completed construction of water main projects in: - 20 Avenue & 19 Street - 27 Avenue & 35 Street - Quality assurance and implementation of privately constructed development projects - Continuation of unidirectional flushing program and valve exercising program - Ongoing operational changes to optimize pressure zones OUTLOOK for 2015 Hydrant maintenance work plan instituted is expected to reveal an efficiency of costs to the Fire Department; an efficiency with distribution of Labour. Continued efforts to enhance the operational SCADA system and Preventative Maintenance Program will occur in the coming year. Environmental Operator Certification Program (EOCP) will be encouraged for all employees (Utilities Section) working on watermain construction.



RCMP DETACHMENT PURPOSE Vernon North Okanagan Detachment provides policing services for an area that consists of an integration of 6 distinct policing jurisdictions encompassing Armstrong (including the Township of Spallumcheen) Enderby (including the Spallumcheen First Nations Lands), Falkland, Lumby, Vernon Rural (including Okanagan First Nations Lands) and the City of Vernon (including the Municipal contract for the District of Coldstream).

The employees of the RCMP are committed to our communities through: -Unbiased and respectful treatment of all people -Accountability -Mutual problem solving -Cultural sensitivity -Enhancement of public safety -Partnerships and consultation -Open and honest communication -Effective and efficient use of resources -Quality and timely service Vernon/North Okanagan RCMP are committed to providing World-Class Policing Services guided by our core values of honesty, integrity, professionalism, compassion, accountability and respect. Our dedication to these core values and steadfast pursuit of our Core Policing Activities of service, prevention, protection, enforcement and intelligence is enhancing public safety and helping to build “A Safe and Secure Canada”.

HIGHLIGHTS of 2014 For the past 5 years up to the end of the first quarter of 2014 we have consistently driven crime down at a rate better than the national average. From the second quarter of 2014 until present that trend has been reversed with a significant spike in criminal code statistics, specifically property crime. However we are on track again this year to be within our allotted budget. We have been assisted in that regard by the absence of major criminal or emergent events that require significantly higher investigative cost, and by the reduced costs to the City for officers away from post for more than 30 days due to injury or long term leave. We have adjusted the job description of one of our key positions so that they are able to take on the role of Auxiliary Constable Coordinator. This will allow for the training of a new compliment of Auxiliary Constables to supplement our current excellent crew. Our communities benefit greatly from the selfless dedication and supportive police and public safety based work of these community minded individuals. Public and private consultation with our stakeholders again provided endorsement for a continuation of our three Strategic Priorities of Crime Reduction, Road Safety and Communication. Note that all efforts are being made to address the current increase in property crime and to achieve our goal of 5% Crime Reduction by year end. OUTLOOK for 2015 The RCMP/Treasury Board salary contract increase for 2014 was 2%. Pay packages have not been negotiated for 2015 or 2016 as yet but it is reasonable to assume that the RCMP will be negotiating to return to the level of compensation afforded to other top Canadian police forces which are currently anticipated to be 3-4 % higher by end of the current contract. The potential retroactive pay adjustment back to 2008 as a result of an RCMP law suit against the Government of Canada and Treasury board that has been documented in past years is still awaiting final resolution. The retro-pay cost is now roughly estimated to be an average of $10,000 per officer. A decision by the courts is expected late 2014.

RCMP Services



Planning a reduced number of undercover projects, holding the line or making some reductions in other cost areas such as training travel and our risk management strategy of purchasing mandatory items such as hard body armour and patrol carbines over an extended period has allowed us to submit a budget within the required 1.8% increase cap while maintaining our current HR resource levels. Note that this budget does not allow for any significant higher cost investigation or extraordinary item. RCMP DETENTION CENTER PURPOSE Ensures the safety and security of all incarcerated individuals brought into the Vernon Detachment cells. This includes persons arrested and detained by the Vernon RCMP, the court system, as well as handling municipal, provincial and federal inmates. The Detention Facility staff also look after routine facility maintenance, assist in the booking, fingerprinting and photographs of charged individuals and civilians and process all subjects required for court and escort. -Projected number of prisoners for 2015: 2150-2250 -Daily average of prisoners: 6 -Criminal fingerprints processed: 924 per year. -Civilian fingerprints processed: 750-780 per year. HIGHLIGHTS of 2014 Normal prisoner levels and no significant issues for past year. OUTLOOK for 2015 Routine maintenance and upkeep anticipated for 2015.

RCMP Services | Continued


RECREATION SERVICES PURPOSE Recreation Services operates the Vernon Recreation Centre including the Vernon Aquatic Centre, Recreation Centre Auditorium, Dogwood and Priest Valley Gymnasiums, Halina Senior Citizens Centre and in the spring and summer months lease the Vernon Curling Club. In addition to these facilities Recreation Services also operates Kal Tire Place, Priest Valley, Civic and Centennial Arenas and both Recreation Services offices located at the Recreation Centre and at Kal Tire Place. In the summer months Recreation Services also operates the Lakeview and Lavington Outdoor Pools. Over 1000 programs are offered in these facilities and in the community through our Programs Division.

HIGHLIGHTS of 2014 2014 was the first year of a five year Fee for Service Agreement with the Regional District of North Okanagan and the District of Coldstream. The 2014 budget was based on the 2013 Regional District adjusted budget plus 1.1% CPI for Canada August as agreed in the Recreation Facilities and Programming MOU. The transition from the RDNO to the City did not occur on January 1, 2014 as planned. Due to this, the reorganization of Recreation Services was slowly rolled out throughout 2014.

OUTLOOK for 2015 In 2015 we will continue to reorganize and stabilize the department and reinvest in the recreation facilities. The 2015 budget is based on the 2014 budget plus a 2.1% CPI for Canada August as agreed in the Recreation Facilities and Programming Agreement.

Recreation Services



Financial Section


THE CORPORATION OF THE CITY OF VERNON Financial Services Division

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED

December 31, 2014

100

THE CORPORATION OF THE CITY OF VERNON 3400 - 30TH STREET VERNON, BC V1T 5E6

P:250-545-1361 F:250-545-7876

MANAGEMENT'S RESPONSIBILITY FOR THE CONSOLIDATED FINANCIAL STATEMENTS

The accompanying financial statements of The Corporation of the City of Vernon (the "City") are the responsibility of management and have been prepared in compliance with legislation, and in accordance with generally accepted accounting standards for local governments established by the Public Sector Accounting Board of the Canadian Institute of Chartered Accountants. A summary of the significant accounting policies are described in Note 1 to the financial statements. The preparation of financial statements necessarily involves the use of estimates based on management's judgment, particularly when transactions affecting the current accounting period cannot be finalized with certainty until future periods.

The City's management maintains a system of internal controls designed to provide reasonable assurance that assets are safeguarded, transactions are properly authorized and recorded in compliance with legislative and regulatory requirements, and reliable financial information is available on a timely basis for preparation of the financial statements. These systems are monitored and evaluated by management.

Mayor and Council meet with management and the external auditors to review the financial statements and discuss any significant financial reporting or internal control matters prior to their approval of the financial statements.

The financial statements have been audited by KPMG LLP, independent external auditors appointed by the City. The accompanying independent Auditors' Report outlines their responsibilities, the scope of their examination and their opinion on the City's financial statements.

Chief Administrative Officer Director of Financial Services

May 1, 2015

101

KPMG LLP 3205-32 Street, 3rd Floor Vernon, BC V1T 9A2 Canada

Telephone (250) 503-5300 Fax (250) 545-6440 www.kpmg.ca

INDEPENDENT AUDITORS’ REPORT

To Mayor and Council of the Corporation of City of Vernon

We have audited the accompanying consolidated financial statements of the Corporation of the City of Vernon, which comprise the consolidated statement of financial position as at December 31, 2014, the consolidated statements of operations, change in net debt and cash flows for the year then ended, and notes, comprising a summary of significant accounting policies and other explanatory information.

Management’s Responsibility for the Consolidated Financial Statements

Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with Canadian public sector accounting standards, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

Auditors’ Responsibility

Our responsibility is to express an opinion on these consolidated financial statements based on our audit. We conducted our audit in accordance with Canadian generally accepted auditing standards. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend on our judgment, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error. In making those risk assessments, we consider internal control relevant to the entity’s preparation and fair presentation of the consolidated financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

KPMG LLP is a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity.KPMG Canada provides services to KPMG LLP.

102

Opinion

In our opinion, the consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Corporation of the City of Vernon as at December 31, 2014, and its consolidated results of operations, its consolidated changes in net debt and its consolidated cash flows for the year then ended in accordance with Canadian public sector accounting standards.

Other Matters

Our audit was conducted for the purpose of forming an opinion on the financial statements taken as a whole. The supplementary information included in Exhibit 1: Schedule of General Revenue Fund Operations and Exhibit 2: Schedule of Sewer Revenue Fund Operations is presented for the purposes of additional analysis and is not a required part of the financial statements. Such supplementary information has been subjected to the auditing procedures applied in the audit of the financial statements and, in our opinion, is fairly stated in all material respects in relation to the financial statements taken as a whole.

Chartered Accountants

June 22, 2015

Vernon, Canada

KPMG LLP is a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity.KPMG Canada provides services to KPMG LLP.

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THE CORPORATION OF THE CITY OF VERNON

Consolidated Statement of Financial Position Statement A

December 31, 2014 (in thousands of dollars) 2014 2013

Financial Assets Cash and cash equivalents Note 2 $ 45,554 $ 33,127 Portfolio investments Note 3 5,212 9,531 Accounts receivable Note 4 19,801 14,946 Municipal Finance Authority deposits Note 5 2,393 2,380 Land under development Note 6 3,142 2,605

76,102 62,589

Liabilities Accounts payable and accrued liabilities Note 7 21,818 21,903 Deferred charges Note 8 8,360 7,382 Deferred revenue Note 9 4,693 1,479 Municipal Finance Authority reserves Note 5 2,393 2,380 Debt Note 10 27,756 30,504

65,020 63,648

Net Financial Assets (Debt) 11,082 (1,059)

Non-financial Assets Tangible capital assets Note 12 570,210 558,460 Inventory of supplies 328 332 Prepaid expenses 580 329

571,118 559,121

Accumulated Surplus Note 13 $ 582,200 $ 558,062

Commitments and contingencies Note 19 & 21

Approved by:

Director of Financial Services

The accompanying summary of significant accounting policies and notes are an integral part of these financial statements.

104


Consolidated Statement of Operations Statement B

For the Year Ended December 31, 2014 (in thousands of dollars)

Budget 2014

Note 24 Actual 2014

Actual 2013

Revenue Taxation Note 14 $ 32,790 $ 32,413 $ 27,750 Government transfers Note 15 7,756 10,721 6,360 Services provided to other governments 3,983 6,088 2,319 Sale of services:

Sewer fees and charges 8,436 9,357 9,313 Environmental health 2,379 2,265 2,408 Recreation Fees 2,157 2,084 - Public transit and parking 1,960 1,881 1,772 Fines and rentals 1,657 1,718 644 Licences and permits 1,254 1,480 977 Airport 922 1,161 1,093 Other 587 609 470 Development fees 102 156 78

Fiscal services: Penalties, interest earned and actuarial 885 2,167 1,888 Gain on retirement of debt obligation Note 17 (b & c) - - 730 Net gain on sales of assets - 11,794 -

Natural gas system agreement 2,540 2,509 2,596 Developer contributions of assets 1,593 3,722 899

69,001 90,125 59,297

Expenses Notes 18 & 23 General government and common services 9,397 9,680 10,424 Bylaw compliance and parking control 1,094 1,118 1,171 Protective Services:

Police 10,739 10,417 9,744 Fire and rescue 5,061 4,640 5,219 Emergency measures 276 330 283

Planning and building inspection 2,056 1,861 1,813 Engineering 2,255 2,079 1,337 Operations Services:

Road transportation 14,797 14,366 13,439 Sanitary sewer 8,493 7,924 7,850 Solid waste and recycling 2,126 1,861 2,038 Park services 1,952 1,735 - Storm drainage 1,216 1,268 1,252 Airport 960 1,177 1,124 Other 524 926 1,117 Cemetery 270 259 237

Recreation 6,481 6,346 -

67,697 65,987 57,048

Annual surplus 1,304 24,138 2,249

Accumulated surplus, beginning of year 558,062 558,062 555,813

Accumulated surplus, end of year Note 13 $ 559,366 $ 582,200 $ 558,062


105


Consolidated Statement of Change in Net Financial Assets Statement C

For the Year Ended December 31, 2014 (in thousands of dollars)

Budget 2014

Note 24 2014 2013

Annual Surplus $ 1,304 $ 24,138 $ 2,249 Add: Amortization of tangible capital assets 9,846 11,422 11,225

Losses on disposal of tangible capital assets (net) - - 342 Proceeds on sale of tangible capital assets - 14,470 49 Consumption of supplies inventories - 648 586 Use of prepaid expenses - 444 705

9,846 26,984 12,907 Less: Acquisition of tangible capital assets 9,362 25,850 7,345

Gains on disposal of tangible capital assets (net) - 11,794 - Acquisition of supplies inventories - 643 575 Acquisition of prepaid expenses - 694 312

9,362 38,981 8,232

(Increase) / decrease in net debt 1,788 12,141 6,924

Net debt, beginning of year (1,059) (1,059) (7,983)

Net financial assets (debt), end of year $ 729 $ 11,082 $ (1,059)


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Consolidated Statement of Cash Flows Statement D

For the Year Ended December 31, 2014 (in thousands of dollars) 2014 2013

Operating Activities Annual surplus $ 24,138 $ 2,249 Non-cash items included in annual surplus:

Amortization of tangible capital assets 11,422 11,225 Net loss on disposal of tangible capital assets - 342 Net gain on transfer of tangible capital assets (11,794) - Actuarial adjustments on long-term debt (1,012) (883) Contributed tangible capital assets (2,360) (454)

Change in non-cash operating items: (Increase) decrease in accounts receivable (4,855) 5,440 (Decrease) in accounts payable and accrued liabilities (85) (166) Increase / (decrease) in deferred charges 978 (151) Increase / (decrease) in deferred revenue 3,214 (112) Decrease in supplies inventories 4 11 (Increase) decrease in prepaid expenses (251) 393

19,399 17,894

Investing Activities: Decrease (increase) in portfolio investments 4,319 (159) (Increase) in land under development (536) (31)

3,783 (190)

Financing Activities: Principal payments on long-term debt (1,736) (1,735)

(1,736) (1,735)

Capital Activities: Proceeds on sale of tangible capital assets 2,676 49 Acquisition of tangible capital assets (11,695) (6,892)

(9,019) (6,843)

Increase in cash and cash equivalents 12,427 9,126

Cash and cash equivalents, beginning of year 33,127 24,001

Cash and cash equivalents, end of year $ 45,554 $ 33,127


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Notes to the Consolidated Financial Statements

Year Ended December 31, 2014 (tabular amounts in thousands of dollars)

1. Significant Accounting Policies:

The Corporation of the City of Vernon (the “City”) is incorporated and operates under the provisions of the Local Government Act and Community Charter of British Columbia. The City provides local government services to residents of its incorporated area including administrative, protective, transportation, sewer, storm drainage, park maintenance, recreation, community development and environmental.

a) Basis of Accounting:

The consolidated financial statements of the City are prepared by management in accordance with accounting standards established by the Public Sector Accounting Board (“PSAB”) of the Chartered Professional Accountants of Canada.

All revenue is recognized on an accrual basis. Property taxes are recognized as revenue in the year they are levied. Utility charges are recognized as revenue in the period earned. Expenses are recorded in the period in which the goods or services are acquired and a liability is incurred.

b) Basis of Consolidation:

The consolidated statements include all funds of the City and its wholly-owned other government organization subsidiaries. Inter-fund revenues, expenses, assets, and liabilities have been eliminated. The following controlled entities have been consolidated:

CBW Development Corp. 100%

Hesperia Development Corp. 100% (assets returned to City in 2013)

c) Measurement Uncertainty:

The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates include assumptions used in estimating historical cost and useful lives of tangible capital assets, estimating provisions for accrued liabilities and contingent liabilities and in performing valuations of employee future benefits. Actual results could differ from those estimates and adjustments, if any, will be reflected in the period of settlement or upon a change in the estimate.

d) Cash and Cash Equivalents:

Management classifies all highly liquid investments with maturity of three months or less at acquisition as cash equivalents.

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1. Significant Accounting Policies: (continued)

e) Non-Financial Assets:

Non-financial assets are not available to discharge existing liabilities and are held for use in the provision of services. They are not intended for sale in the ordinary course of operations. The change in non-financial assets during the year, together with the annual surplus/deficit, provides the consolidated change in net debt for the year.

f) Tangible Capital Assets and Amortization:

Tangible capital assets are recorded at cost less accumulated amortization. Cost includes all costs directly attributable to acquisition or construction of the tangible capital asset including transportation costs, installation costs, design and engineering fees, and site preparation costs. The City does not capitalize interest costs associated with the acquisition or construction of a tangible capital asset. Contributed tangible capital assets are recorded at fair value at the time of the contribution, with a corresponding amount recorded as revenue. Amortization is recorded on the basis of straight-line or declining balance over the estimated useful life of the tangible capital asset, as follows:

Transportation Infrastructure: Roads (surface) Straight-line 25 years

Roads (base) Straight-line 75 years

Bridges Straight-line 50 to 75 years

Sidewalks Straight-line 25 to 50 years

Traffic signals Straight-line 15 years

Street lighting Declining Balance 5%

Parking meters Declining Balance 10%

Storm Sewers Straight-line 75 years

Sanitary Sewer Infrastructure Straight-line 75 years

Buildings Straight-line 35 to 60 years

Vehicles Straight-line 7 to 29 years

Miscellaneous Equipment Straight-line 10 to 30 years

Information Technology Declining Balance 40%

Natural Gas System Straight-line 35 years

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g) Land Under Development:

Land under development is valued at the lower of cost and net realizable value. Costs of inventory include the original landcosts and design, engineering and other related costs associated with holding the property.

h) Deferred Revenue:

Deferred revenue represents property taxes, licenses, permits and other fees that have been collected, but for which therelated taxes have not yet been levied and services or inspections have yet to be performed. These amounts will berecognized in revenue in the fiscal year taxes are levied, services are performed, or revenues are earned. Deferred revenueamounts are included in Accounts Payable and Accrued Liabilities (note 7).

i) Debt Charges:

Debt principal payments are not charged against current operating revenue pursuant to PSAB. Interest is recorded on anaccrual basis. Gross interest paid on long term debt in 2014 was $1,616,000, ($1,678,000 in 2013).

j) Deferred Charges:

Deferred charges are comprised of levied and unused Development Cost Charges and Sidewalk Gifting funds. These funds arerecorded as revenue in the year they are used to fund tangible capital asset acquisitions or eligible operating expenses.

k) Reserves:

Statutory reserve funds are used for future capital expenses as designated by bylaw and City Council. Non-statutory reservesare amounts set aside from past and current operations and are not governed by bylaw.

l) Employee Future Benefits:

The City and its employees make contributions to the Municipal Pension Plan. As this plan is a multi-employer plan, the City’scontributions are expensed as incurred.

Sick leave and other retirement benefits are also available to the City’s employees. The costs of these benefits are determinedbased on service and best estimates of retirement ages and expected future salary and wage increases. The obligations underthese benefit plans are accrued based on projected benefits as the employees render services necessary to earn futurebenefits.

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m) Government Transfers:

Government transfers are recognized as revenue in the period in which the event giving rise to the transfer occurs, provided the transfers are authorized, any eligibility criteria have been met, and reasonable estimates of the amounts can be made. Transfers received in the current year that do not meet these criteria are deferred.

n) Budget Figures:

The budget figures are from the annual Financial Plan Bylaw. They have been reallocated to conform to PSAB financial statement presentation requirements where appropriate. Subsequent amendments have been authorized by City Council to reflect changes in the budget. Such amendments are not reflected in the financial statement budget figures (note 24).

o) Comparative Figures:

Certain comparative figures have been reclassified to conform to the financial statement presentation adopted in the current year.

p) Segment Disclosures:

Segmented financial information is presented in groups of distinguishable activities in a similar approach to the City’s internally reported cost centres. These segments are structured in a fashion to assist users of financial statements in understanding and identifying the resources allocated to support commonly recognized functions of the City. Segments are identified primarily by function and secondarily by organizational relationship. Revenues are allocated to segments when there is a direct cause and effect relationship to the expenses of those segments. Revenues that cannot be reasonably allocated in such a manner are considered common to the City as a whole and reported in general government (note 22).

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2. Cash and Cash Equivalents:

2014 2013

Restricted: Deferred charges $ 8,360 $ 7,382 Deferred revenue 4,693 1,479 Statutory reserves 1,803 1,747

14,856 10,608

Unrestricted: 30,698 22,519

$ 45,554 $ 33,127

The City has access to an operating line of credit not exceeding $2.0 million. Interest is accrued based on Valley First, A Division of First West Credit Union's prime lending rate plus 0.25%. As of December 31, 2014, this line of credit was not being utilized (2013- nil).

3. Portfolio Investments:

Portfolio investments are comprised of pooled investments in the Municipal Finance Authority Bond Fund. As of December 31, 2014, all such investments represented development cost charges. Portfolio investments are recorded at their cost and written down to reflect losses in value that are other than temporary.

4. Accounts Receivable:

2014 2013

Property taxes $ 4,091 $ 1,896

Utility billings 6,905 6,461

Other governments 6,941 5,029

Trade and other receivables 1,989 1,685

19,926 15,071

Allowance for doubtful trade accounts receivable (125) (125)

$ 19,801 $ 14,946

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5. Municipal Finance Authority – Deposits and Reserves:

The City issues most of its debt through the MFA. As a condition of these borrowings, a portion of the debenture proceeds are withheld by the MFA as a debt reserve fund. The City also executes demand notes in connection with each debenture whereby the City may be required to pay certain amounts to the MFA. (See note 21(b)). The details of the cash deposits withheld from debenture proceeds and demand notes at year end are as follows:

Demand Notes Cash Deposits 2014 2013

MFA deposits and reserves - general $ 1,087 $ 474 $ 1,561 $ 1,548

MFA deposits and reserves - sewer 533 299 832 832

$ 1,620 $ 773 $ 2,393 $ 2,380

6. Land Under Development:

In 2008, development activity began for both Hesperia Development Corporation and CBW Development Corporation. The accumulated value of $3,142,000 (2013 - $2,605,000) is comprised of the historical cost of the land plus all design, engineering, and related costs incurred to date. Such costs have not been included in tangible capital assets since the land and improvements are subject to resale upon completion of the development.

7. Accounts Payable and Accrued Liabilities:

2014 2013

Trade accounts payable and other accrued liabilities $ 12,604 $ 13,637

Salaries, wages and related costs 3,911 3,777

16,515 17,414

Deferred revenue Prepaid property taxes 2,871 2,847 Deposits and holdbacks 2,371 1,414 Prepaid fees and charges 61 288

5,303 4,489

$ 21,818 $ 21,903

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8. Deferred Charges:

Deferred Charges include Sidewalk Gifting Funds and Development Cost Charges (DCC’s). Sidewalk Gifting Funds are charged to developers through a works contribution agreement requiring the City to use funds for future sidewalks adjacent to each property. DCC's are collected to pay for 95% of the general capital costs due to development and 90% of utility capital costs on specified projects. In accordance with the Local Government Act, these funds must be deposited into a separate reserve fund. DCC’s are deferred and recognized as revenue when the related costs are incurred.

2014 2013

Deferred charges Development cost charges - roads $ 1,623 $ 934 Development cost charges - storm 1,811 1,878 Development cost charges - sewer 3,133 2,810 Sidewalk gifting funds 1,793 1,760

$ 8,360 $ 7,382

Deferred charges, beginning of year $ 7,382 $ 7,533 DCC's levied during the year 2,017 103 Sidewalk gifting funds received 74 111 Investment income 201 103

Contributions available 9,674 7,850 Capital transfers 950 101 Operating transfers 364 367

Deferred charges, end of year $ 8,360 $ 7,382

9. Deferred Revenue:

2014 2013

Federal gas tax/transit funds $ - $ 1,479

Recreation Facility Major Maintenance 1,697 -

Recreation Facility Replacement (Civic) 912 -

Recreation Facility Operating 2,084 -

$ 4,693 $ 1,479

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10. Debt:

Purpose of Bylaw Interest Rate %

Year of Maturity Gross Debt

Sinking Fund Asset

2014 Net Debt

2013 Net Debt

General Purposes:

4717 Fortis BC Gas Lease * 5.25% 2019 $ 24,500 $ 15,091 $ 9,409 $ 11,030

4718 Fortis BC Gas Lease * 9.85% 2037 1,185 36 1,149 1,162

4624 Downtown Revitalization 4.15% 2020 388 205 183 210



4739 Various 4.15% 2020 4,675 2,471 2,204 2,524

31,087 17,982 13,105 15,109

Sewer Purposes:

1214BJ Blue Jay Specified Area 5.99% 2017 100 78 22 32

4889 Reclaimed Water Line 4.15% 2020 1,061 561 500 573

4680 Treatment Plant Phase I 6.06% 2027 5,000 1,668 3,332 3,512

4680 Treatment Plant Phase II 4.90% 2028 2,038 607 1,431 1,501

4791 Water Reclamation Plant 4.15% 2030 12,556 3,190 9,366 9,777

20,755 6,104 14,651 15,395

Total Long-term Debt $ 51,842 $ 24,086 $ 27,756 $ 30,504

* See Note 16 for capital lease liabilities.

11. Future Payments and Sinking Fund Additions:

General Sewer Total

2015 $ 1,233 $ 505 $ 1,738

2016 1,234 505 1,739

2017 1,236 505 1,741

2018 1,237 502 1,739

2019 1,239 502 1,741

2020 & thereafter 1,329 4,592 5,921

7,508 7,111 14,619

Actuarial adjustments 5,597 7,540 13,137

$ 13,105 $ 14,651 $ 27,756

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12. Tangible Capital Assets:

Cost December 31, 2013 Additions Disposals /

Write-downs December 31, 2014

Land $ 247,886 $ 12,765 $ 1,912 $ 258,739

Buildings 61,472 3,401 149 64,724

Vehicles 11,369 649 41 11,977

Miscellaneous equipment 1,526 81 - 1,607

Information technology 3,918 419 1,439 2,898

Transportation infrastructure 205,027 4,952 1,238 208,741

Storm drain infrastructure 74,190 1,825 160 75,855

Sanitary sewer infrastructure 96,169 1,758 256 97,671

Fortis BC leasehold equipment 25,295 - - 25,295

$ 726,852 $ 25,850 $ 5,195 $ 747,507

Accumulated Amortization December 31, 2013 Amortization Amortization on

Disposals December 31, 2014

Buildings $ 20,611 $ 1,582 $ 138 $ 22,055

Vehicles 5,906 595 36 6,464

Miscellaneous equipment 959 33 - 992

Information technology 2,726 454 1,350 1,831

Transportation 86,996 5,759 822 91,932

Storm drainage infrastructure 19,225 989 67 20,148

Sanitary sewer infrastructure 24,019 1,287 105 25,202

Fortis BC leasehold equipment 7,950 723 - 8,673

$ 168,392 $ 11,422 $ 2,518 $ 177,297

Net Book Value December 31, 2013 December 31, 2014

Land $ 247,886 $ 258,738

Buildings 40,861 42,669

Vehicles 5,463 5,512

Miscellaneous equipment 567 615

Information technology 1,192 1,067

Transportation infrastructure 118,031 116,809

Storm drain infrastructure 54,965 55,708

Sanitary sewer infrastructure 72,150 72,470

Fortis BC leasehold equipment 17,345 16,622

$ 558,460 $ 570,210

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12. Tangible Capital Assets: (continued)

a) Work-in-progress

Work-in-progress is comprised of costs related to projects currently under planning, development or construction that willresult in a finished asset at a future date. Such costs are capitalized until such time as the property is ready for use.Work-in-progress having a value of $14,146 (2013 - $8,785) has not been amortized. Amortization of these assets willcommence the year following when each specific asset is put into service.

b) Contributed Tangible Capital Assets

Contributed tangible capital assets have been recognized at fair market value at the date of contribution. The value ofcontributed assets received during the year is $2,361,000 (2013 - $454,000) comprised of transportation infrastructure in theamount of $1,293,000 (2013 - $280,000), storm drain infrastructure in the amount of $613,000 (2013 - $87,000) and sanitarysewer infrastructure in the amount of $446,000 (2013 - $87,000) and land in the amount of $9,000 (2013 - $nil).

c) Tangible Capital Assets Disclosed at Nominal Values

Where an estimate of fair value is not determinable, the tangible capital asset is recognized at a nominal value.

d) Intangible Assets

The City manages and controls various works of art and non-operational historical cultural assets including buildings, artifacts,paintings and sculptures located at city sites and public display areas. These assets are not recorded as tangible capital assetsand are not amortized.

e) Write-down of Tangible Capital Assets

Tangible capital assets are written down when conditions indicate that they no longer contribute to the City’s ability toprovide goods and services. Any impairment is accounted for as an expense in the consolidated statement of operations. Noimpairments were identified or recorded during the year ended December 31, 2014 and 2013.

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13. Accumulated Surplus:

Accumulated surplus consists of individual fund surpluses and reserves. Operating surplus for the City is as follows:

2014 2013

Accumulated surplus per Statement of Financial Position $ 582,200 $ 558,062

Less: Tangible capital assets (570,210) (558,460) Debt 27,756 30,504

39,746 30,106

Non-Statutory Reserves Budget Carry-over Reserve General 1,147 2,294 Budget Carry-over Reserve Sewer 49 2,716 Capital Reserves General 8,094 4,493 Capital Reserves Sewer 10,249 10,548 Operating Reserves General 262 216 Tax Equalization Reserves General 4,415 2,754 Tax Equalization Reserves Sewer 6,076 1,782 Special Purpose Reserves 4,655 1,607 Fortis BC Lease Legacy Reserve 2,302 1,824

37,249 28,234

Statutory Reserve Funds Highway Access to Water Reserve 602 595 Land Sale Reserve 227 235 Local Improvement Reserve 826 816 Parkland Reserve Equity 149 101

1,804 1,747

Total Restricted Funds 39,053 29,981

Unappropriated Surplus $ 693 $ 125

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14. Property Tax Revenue:

Total tax revenue net of transfers of taxes collected for other governments and agencies were as follows:

2014 2013

Specific assessments: Residential $ 18,065 $ 16,469 Business 9,379 8,465 Utilities 276 268 Light industrial 444 409 Non-profit 113 111 Farm land 3 3

28,280 25,725

Payments in lieu of taxes 1,263 1,245

Specified area taxes and other 2,870 780

$ 32,413 $ 27,750

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15. Government Transfers

2014 2013

Federal government transfers Transportation infrastructure $ 3,128 $ 1,157 Keep of prisoners 257 240 Economic development - 12

3,385 1,409

Provincial government transfers Casino revenue sharing 2,005 1,951 Transit subsidy 1,876 1,741 Hotel tax 559 416 Transportation infrastructure 422 60 Traffic fine revenue 394 393 Carbon tax rebate 88 53 Bike BC grant 83 - Insurance Corporation of BC 56 - Emergency management 52 25 Tourism BC 25 25 Municipal Insurance Agency 14 - BC Hydro initiatives 4 90

5,578 4,754

Other government transfers Recreational initiatives 1,583 - Okanagan Basin Water Board 120 94 Regional initiatives 18 61 Community development initiatives - 18 Laker's Clubhouse 15 - COR safety program 13 14 Sanitary sewer system initiative - 6 Interior Health Authority 5 - Canada Day celebrations 4 4

1,758 197

Total government transfers $ 10,721 $ 6,360

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The City has entered into an agreement with BC Gas Utility Ltd. (now known as Fortis BC Gas Inc. and hereafter referred to as “Fortis BC”) which has resulted in the creation of the Natural Gas Legacy Fund.

a) Leased Tangible Capital Assets:

Under the terms of the agreement, the City has entered into a 35-year lease of tangible capital assets commencing December 1, 2002 for the natural gas distribution system within the City boundary. The City has prepaid $23,750,000 of the capital lease obligation and has financed the prepayment through debenture debt (Debt Bylaw # 4718, note 10.) The remaining obligation, which is included in debt, will be paid with annual lease payments of $127,884 including interest based on Fortis BC-approved pre-tax weighted average cost of capital of 9.85%.

b) Operating Lease:

The City has also entered into a 17-year operating lease that commenced December 1, 2002 whereby the City leases back to Fortis BC the operation of the gas distribution system. Under the operating lease, Fortis BC is obligated to make annual lease payments to the City that are calculated by a formula specified in the agreement which is based on the total annual revenue generated by the transaction. The lease revenue in 2014 was $2,069,000, ($2,124,000 in 2013). At the end of the 17-year term, Fortis BC has the option of making a termination payment equal to the unamortized portion of the City’s $23,750,000 prepayment under the lease of tangible capital assets, which is estimated to be $12,214,000 or negotiate a new 18-year operating lease with a continuation of the annual lease payments which existed under the previous 17-year operating lease agreement.

17. Long-term Agreements with the Regional District of North Okanagan (the "Regional District"):

a) Water Agreement

The City has entered into a five-year agreement with the Regional District for the operation of the water system in Vernon and Electoral Areas B and C and owned by the Regional District. This agreement replaces a 10-year agreement expiring January 31, 2013. Under this agreement, the City is responsible for the day-to-day operation of the water system within the City and Areas B and C, and is wholly reimbursed by the Regional District for the operating expenses made to undertake these duties. The agreement expires January 31, 2018.

b) Parks Agreements

In September 2013, the Regional District, District of Coldstream and the City entered into a Memorandum of Understanding(“MOU”) to restructure and re-align the delivery of parks, recreation, programming and arts, culture and youth. The reorganization of the service delivery resulted in asset transfer, service and operation agreements between the RegionalDistrict and the City. The City entered into an agreement with the Regional District to assume responsibility for the management and operation of local parks commencing January 1, 2014. The agreement involves the transfer of park landbetween both parties so that local parks within the City are owned and operated by the City and designated sub-regionalparks are owned and operated by the Regional District. The City has entered into a three year agreement with the RegionalDistrict to assume responsibility for the management and operation of sub-regional parks commencing January 1, 2014 andending December 31, 2016. The new agreement resulted in a decrease in taxation charged by the Regional District and anincrease in taxation charged by the City. The amount of tax shift in 2014 was $1,247,000.

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During the year ended December 31, 2014 the City transferred to the Regional District park land with an estimated fair market value of $23,941,000 and the Regional District transferred park land to the City with an estimated fair market value of $12,435,000. Additional park land owned by the Regional District with an estimated fair market value of $4,699,000 had not yet been transferred to the City as of December 31, 2014.

This non-monetary exchange transaction has been determined to have commercial substance in that the configuration of the cash flows of the asset given up and the configuration of the cash flows of the asset received differs significantly. Accordingly, the transaction has been measured at the fair value with a resulting gain of $15,273,000, of which $4,699,000 has been deferred until the properties are transferred.

In addition, the Regional District retains control of development cost charges collected under their Parks DCC bylaw. Portions of the monies collected are held for the benefit of the City of Vernon. The funds are to be disbursed on parks within the City’s boundaries. Since the monies are held by the Regional District, ultimate control over disbursal is subject to Regional District board approval. At December 31, 2014, the Parks DCC amount totalled $2,006,599.

c) Recreation Agreement

Subject to the same September 2013 MOU noted above, the City entered into a five year agreement with the Regional Districtto assume responsibility for the management and operation of local recreational facilities commencing January 1, 2014 andending December 31, 2018. The agreement also involves the transfer of recreation facilities and related land from theRegional District to the City to re-align responsibility for the facilities and programming to the City. The new agreementresulted in a decrease in taxation charged by the Regional District and an increase in taxation charged by the City. The amountof tax shift in 2015 will be approximately $2,282,000.

During the year ended December 31, 2014 the Regional District transferred to the City recreation facilities and land with an estimated fair market value of $908,000. Additional facilities and land owned by the Regional District with an estimated fairmarket value of $28,920,000 had not yet been transferred to the City as of December 31, 2014.

This transaction has been accounted for as in conjunction with the Parks Agreement noted above and accordingly the fairmarket value of the facilities and land received has been recognized as a gain in income in the year.

18. Expenses by Object:

2014 2013

Salaries and wages $ 23,740 $ 20,074

Contracted services 12,082 9,326

RCMP contract 7,464 6,717

Amortization of tangible assets 11,422 11,225

Supplies, materials and other 3,960 3,744

Bank charges and net loss on capital assets 1,728 2,164

Utilities, telephone and insurance 4,049 2,463

Equipment charges 1,542 1,335

$ 65,987 $ 57,048

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19. Commitments:

The City has entered into a lease agreement for a transit maintenance facility with BC Transit for 40 years with two 10 year renewal options. The 40-year lease was prepaid in full in the amount of $1,310,000 upon occupancy by BC Transit of the site in November 2011 (see note 7).

20. Cemetery Care Trust Fund:

The City owns and maintains Pleasant Valley Cemetery. Pursuant to provincial legislation, a Cemetery Care Trust Fund was established to ensure continuity of cemetery maintenance. A portion of all plot sales and memorial setting fees is credited to this Fund. Although the Fund balance is not included in the consolidated financial statements, all investment earnings during the year are transferred into general revenue as permitted by law.

2014 2013

Trust Fund Continuity:

Balance, beginning of year $ 700 $ 675

Interest earned 14 10

Proceeds from plot sales and memorial settings 26 25

Transfers to general fund for maintenance (14) (10)

Balance, end of year $ 726 $ 700

21. Contingent Liabilities:

a) Regional District:

The City is responsible as a member of the Regional District for its proportional share of operating deficits related to functions in which it participates. Under the provisions of the Local Government Act, the Regional District’s debt is a joint and several liability of the Regional District and each of its member municipalities including the City.

b) MFA Demand Notes:

Debentures are covered by a loan agreement with the MFA which provides that, if at any time the payments provided for in the agreement are not sufficient to meet the authority’s obligations in respect of such borrowings, the resulting deficiency becomes a proportional liability of each member local government, including the City. As these demand notes are contingent in nature, no liability is recorded.

c) Municipal Insurance Association:

In 1987, the City entered into a self-liability insurance plan with several other local governments in British Columbia forming the Municipal Insurance Association of BC. The City is obligated under the plan to pay a percentage of its fellow insured’s losses. The City pays an annual premium, which is anticipated to be adequate to cover any losses incurred.

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21. Contingent Liabilities: (continued)

d) Legal Claims:

The City has been named defendant in several uninsured legal actions. No reserve or liability has been recorded regarding any of the legal actions and any possible claims because the amount of loss, if any, is not determinable. Settlement, if any, made with respect to these actions, will be accounted for as an expense in the period in which realization is known.

e) Pension Liability:

The City and its employees contribute to the Municipal Pension Plan (the Plan), a jointly trusteed pension plan. The board of trustees, representing plan members and employers, is responsible for overseeing the management of the Plan, including investment of the assets and administration of benefits. The Plan is a multi-employer contributory pension plan. Basic pension benefits provided are based on a formula. The Plan has about 182,000 active members and approximately 75,000 retired members. Active members include approximately 36,000 contributors from local government.

The most recent actuarial valuation as at December 31, 2012 indicated a $1,370 million funding deficit for basic pension benefits. The next valuation will be December 31, 2015 with results available in 2016.

Employers participating in the Plan record their pension expense as the amount of employer contributions made during the fiscal year (defined contribution pension plan accounting). This is because the Plan records accrued liabilities and accrued assets for the Plan in aggregate, with the result that there is no consistent and reliable basis for allocating the obligation, assets and cost to individual employers participating in the Plan.

The City of Vernon paid $1,856,000 (2013 - $1,770,000) for employer contributions while employees contributed $1,584,000 (2013 - $1,524,000) to the Plan in fiscal 2014.

f) Letter of Credit – Hesperia Property:

In 2007, the City issued an Irrevocable Letter of Credit in favour of the Agricultural Land Commission (“ALC”) of British Columbia as a guarantee to fund works required by the ALC as a condition of the property being removed from the Agricultural Land Reserve. The property is being developed by the wholly-owned subsidiary, the Hesperia Development Corporation. The amount of the Letter of Credit is $716,000. As of December 31, 2014, no drawing on the Letter of Credit has occurred.

g) Royal Canadian Mounted Police (“RCMP”):

The City has a contract with the provincial government whereby policing services are provided by the RCMP. In January 2015, the Supreme Court of Canada dismissed the appeal challenging a federal government decision to roll back pay increases from 2008 to 2010 for RCMP members. The City did not record any provision for this matter in its financial statements as at December 31, 2014.

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22. Segmented Information:

Segmented information has been grouped into related department functions or service areas for segment reporting purposes provided in note 23 which shows the associated revenues and expenses for each segment. The various segments are described as follows:

a) General Government:

This segment is comprised of all general government and common services provided within the City. It includes legislative services, corporate administration, City Clerk’s office, tourism, finance, human resources, information services, civic building maintenance, bylaw compliance, parking control, and subsidiary corporations.

- Legislative services and corporate administration are responsible for general government administration including council support, conducting elections and records management.

- Tourism is responsible for tourism marketing and managing the City's tourist booth location.

- Finance is responsible for the oversight of all financial matters including financial planning, collection of revenues, purchasing and financial reporting.

- Human resources are responsible for staff recruiting, payroll processing, occupational health and safety and labour relations.

- Information services are responsible for planning, maintaining and operating the City’s information systems.

- The GIS department catalogues the city’s infrastructure geographically for use by the City and its citizens.

- Civic building maintenance is responsible for maintaining all buildings owned by the City.

- Bylaw compliance and parking control is responsible for administrating and encouraging compliance to regulatory bylaws, patrolling City owned/leased paid parking lots, residential permit zones and restricted parking areas. They also patrol and maintain almost 1,000 parking meters. This function focuses on community security and safety programs in conjunction with police services.

- The City’s subsidiary corporation is 100% owned.

- Revenues associated with this segment include all those amounts that cannot be attributed directly to other segments including taxation, grants in lieu, interest revenue and property rental revenue.

b) Protective Services:

This segment is comprised of police services, plus fire and rescue and emergency measures services.

- Police services are contracted to the RCMP with support assistance from municipal staff. The City is home to a regional detachment for the North Okanagan. The City has a proactive community policing group that provides programs for its citizens and businesses such as citizens on patrol, crime stoppers, block watch and safety patrols.

- Fire and rescue services provide fire response, investigation and prevention services within the City’s fire department.

- Emergency measures services include a contract to provide services within other jurisdictions of the North Okanagan. This program is responsible for emergency planning within the community and is engaged when more than one individual member may be affected by an emergency situation.

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22. Segmented Information: (continued)

c) Planning and Engineering:

This segment is comprised of community development, planning, building inspections services and the capital works program.

- Community Development is responsible for sustainable development throughout the City including environmental, economic and social development.

- Planning is responsible for land use planning – long term and short term – plus the administration of the Official Community Plan and zoning bylaws.

- Buildings Inspections is responsible for issuing permits for any developments in the City including building permits, rezoning and development permits.

- Engineering is responsible for the planning and implementation of the capital works program for all infrastructure - storm, sewer and transportation. They work in conjunction with Planning and Operations.

d) Operations:

This segment is responsible for the operation and maintenance of the City’s infrastructure assets including roads, sidewalks and storm drains. Other components include public transit, solid waste and recycling, cemetery and airport.

- Road transportation encompasses year round maintenance of roads, street lights, signs and sidewalks; plus the public transit system which is contracted with BC Transit with subsidies provided from the Province

- Storm drainage includes the maintenance of storm infrastructures including mains, manholes and catch basins.

- The Vernon Regional Airport provides services to small aircraft and executive jets in the region and includes a paved lighted runway, hangars, jet and regular air fuel dispensing.

- Solid waste and recycling services are contracted with the Regional District of North Okanagan.

- The City has one cemetery whose operation is overseen by the Operations group. Other services provided within the City include; overseeing fleet activities and support for the Regional District water services and parks and recreation services.

e) Sanitary Sewer Operations:

This segment is responsible for the entire sanitary sewer operation and maintenance of the sewer infrastructures including mains, manholes, catch basins and lift stations. Plus, it is responsible for the operation and maintenance of the Vernon Water Reclamation Centre and spray irrigation system.

f) Recreation:

This segment is responsible for the management, maintenance and operation of all recreation facilities within the City. This includes planning and delivery of recreation programs for all ages of citizens, maintenance and operation of all arenas, the indoor pool and two outdoor pools in the summer.

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23. Segmented Disclosure:

General Government

Protective Services

Planning & Engineering Recreation

Operations Services

Sanitary sewer

Total 2014

Total 2013

Revenue Taxation $ 31,984 $ - $ - $ - $ - $ 429 $ 32,413 $ 27,750 Services to other governments 426 605 285 3,318 967 487 6,088 2,319 Government transfers 4,766 712 141 507 4,354 241 10,721 6,360 Sale of services 2,027 243 1,635 3,184 4,265 9,357 20,711 16,755 Fiscal services 14,182 - - - (308) 87 13,961 2,618 Transfers of assets from developers - - 12 - 2,881 829 3,722 899 Natural gas system agreement 2,509 - - - - - 2,509 2,596

55,894 1,560 2,073 7,009 12,159 11,430 90,125 59,297

Expenses Salaries and wages 6,213 6,825 2,782 3,280 2,992 1,648 23,740 20,074 Contracted services 1,161 217 595 1,304 8,002 803 12,082 9,326 RCMP contract - 7,464 - - - - 7,464 6,717 Amortization of tangible assets 1,945 198 - - 6,789 2,490 11,422 11,225 Supplies, materials and other (286) 300 521 625 1,886 914 3,960 3,744 Bank fees and net loss on assets 934 - - 32 - 762 1,728 2,164 Utilities, telephone and insurance 753 206 12 1,037 995 1,046 4,049 2,463 Equipment charges 78 177 30 68 928 261 1,542 1,335

10,798 15,387 3,940 6,346 21,592 7,924 65,987 57,048

Excess (deficiency) revenue over expenses $ 45,096 $ (13,827) $ (1,867) $ 663 $ (9,433) $ 3,506 $ 24,138 $ 2,249

127




24. Budget Data:

The budget data presented in these consolidated financial statements is based upon the 2014 operating and capital budgets approved by Council on February 11, 2014 (Bylaw 5481). The schedule below reconciles the approved budget to the budget figures reported in these consolidated financial statements.

Budget Amount

Revenue: Operating budget $ 103,234 Capital budget 7,698

110,932 Less:

Transfers from other funds and reserves 6,008 Collections for other governments 32,544 RDNO water contract 3,273 Internal revenues 106

(41,931)

Total Revenue 69,001

Expenses:

Operating budget 110,608

Capital budget 8,769

119,377

Less:

Capital expenses 8,769

Transfers to other funds and reserves 5,464

Debt principal payments 1,736

Collections for other governments 32,544

RDNO water contract 3,273

Internal revenues (106)

(51,680)

Total Expenses 67,697

Annual Surplus $ 1,304

128

SUPPLEMENTARY FINANCIAL INFORMATION(UNAUDITED)

129


Schedule of General Revenue Fund Operations (unaudited) Exhibit 1

December 31, 2014 (in thousands of dollars) Budget 2014

Actual 2014

Actual 2013

General Revenue Taxation $ 32,779 $ 31,984 $ 27,707 Services provided to other governments 3,546 5,601 1,824 Government transfers 7,625 10,480 6,205 Sale of services 11,016 11,355 7,442 Fiscal services 886 1,155 1,005 Natural gas system agreement 2,539 2,509 2,596 Developer contributions of assets 1,345 2,893 372

59,736 65,977 47,151

General Expenses General government and common services 9,397 9,181 9,970 Bylaw enforcement and parking control 1,094 1,118 1,171 Protective Services

Police 10,739 10,417 9,744 Fire and rescue 5,061 4,640 5,219 Emergency measures 276 330 283

Planning and building inspection 2,056 1,861 1,813 Engineering 2,255 2,079 1,337 Operations

Road transportation 14,797 14,364 13,441 Solid waste and recycling 2,126 1,861 2,038 Park services 1,952 1,735 - Storm drainage 1,216 1,268 1,252 Airport 960 1,177 1,124 Other 524 439 674 Cemetery 270 259 237

Recreation 6,481 6,346 -

59,204 57,075 48,303

General Surplus / (Deficit), before reconciling items 532 8,902 (1,152)

Add (subtract): Amortization of tangible assets 7,515 8,931 8,778 Losses on disposal of tangible capital assets (net) - - 333 Transfers from reserves 3,693 4,033 5,949 Net gain on sales of assets - (11,946) - Acquisition of capital assets (7,559) (6,850) (5,187) Debt principal payments (1,231) (1,231) (1,230) Transfers to reserves (2,950) (11,711) (6,978)

Surplus, for purposes of balanced budget and tax rate determination $ - $ 16,482 $ 2,973

The accompanying summary of significant accounting policies and notes are an integral part of these financial statements. 130


Schedule of Sewer Revenue Fund Operations (unaudited) Exhibit 2

December 31, 2014 (in thousands of dollars) Budget 2014

Actual 2014

Actual 2013

Sewer Revenue Taxation $ 11 $ 429 $ 42 Services provided to other governments 437 487 495 Government transfers 131 120 100 Sale of services 8,437 9,357 9,313 Developer contributions of assets 248 829 527

9,264 11,222 10,477

Sewer Expenses Common services 1,172 314 275 Collection system 1,747 2,007 1,912 Treatment system 3,668 4,313 4,658 Disposal system 1,504 1,732 1,407 Pump stations 401 533 483

8,492 8,899 8,735

Sewer Surplus, before reconciling items 772 2,323 1,742

Add (subtract): Amortization of tangible assets 2,330 2,490 2,447 Losses on disposal of tangible capital assets (net) - - 10 Transfers from reserves 2,315 2,937 4,347 Acquisition of capital assets (2,399) (2,884) (1,704) Debt principal payments (505) (505) (505) Transfers to reserves (2,513) (4,276) (6,178)

Surplus, for purposes of balanced budget and user rate determination $ - $ 1,095 $ 1,169


131

Statistical Section


(In $1,000's) 2010 2011 2012 2013 2014FINANCIAL POSITION

Financial Assets 64,886$ 56,807$ 58,676$ 62,589$ 76,102$

Liabilities 76,078 67,368 66,659 63,648 65,020

Net Financial Assets (Debt) (11,192) (10,561) (7,983) (1,059) 11,082

Non-financial Assets 561,196 565,765 563,796 559,121 571,118

Accumulated Surplus, end of year 550,004$ 555,204$ 555,813$ 558,062$ 582,200$

STATEMENT OF OPERATIONS

Revenue 60,907$ 59,826$ 59,257$ 59,297$ 90,125$

Expenses 57,701 54,626 58,648 57,048 65,987

Annual Surplus 3,206 5,200 609 2,249 24,138

Accumulated Surplus, beginning of year - 3,206 555,204 555,813 558,062


ACCUMULATED SURPLUS

Tangible capital assets 522,124$ 529,290$ 529,610$ 527,956$ 542,454$

Statutory reserves 1,750 1,745 1,838 1,747 1,804

Non-statutory reserves 26,328 24,968 24,972 28,234 37,249

Operating surplus (198) (799) (607) 125 693


Summary of Financial Results 2014

$(20,000)

$(10,000)

$-

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

2010 2011 2012 2013 2014

Summary of Financial Results(in $1,000's)

OperatingsurplusNon-statutoryreservesStatutoryreservesNet FinancialAssets (Debt)


(In $1,000's except for per-capita figures) 2010 2011 2012 2013 2014*

Equity in Tangible Capital Assets:General 435,106$ 440,913$ 441,279$ 440,657$ 453,924$

Sewer 87,018 88,377 88,331 87,299 88,530 522,124$ 529,290$ 529,610$ 527,956$ 542,454$

Non-Capital Accumulated Surplus:Statutory Reserves 1,750$ 1,745$ 1,838$ 1,747$ 1,804$

Non-Statutory Reserves:

Funds Committed for Uncompleted Projects 4,658 2,487 3,593 5,010 1,196

Capital Purposes 16,314 16,496 15,867 16,154 19,055

Operating Purposes 586 1,052 643 885 5,327

Tax & User Rate Equalization 3,257 3,499 3,587 4,361 9,369

Natural Gas System Lease Arrangement 1,513 1,434 1,282 1,824 2,302

26,328 24,968 24,972 28,234 37,249

Operating Funds (198) (799) (607) 125 693

27,880$ 25,914$ 26,203$ 30,106$ 39,746$

NON-CAPITAL ACCUMULATED SURPLUS (FINANCIAL EQUITY) PER CAPITA 717$ 666$ 677$ 782$ 1,023$

TOTAL ACCUMULATED SURPLUS 550,004$ 555,204$ 555,813$ 558,062$ 582,200$

Accumulated Surplus 2014

*During 2014, there was an asset swap with RDNO that resulted in a net increase in assets valued at $12,047,000.

$(5,000)

$-

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

$40,000

$45,000

2010 2011 2012 2013 2014

Non-Capital Accumulated Surplus (Financial Equity)(in $1,000's)

Operating Funds

Non-Statutory ReservesStatutory Reserve Funds


(in $1,000's except for per-capita figures) 2010 2011 2012 2013 2014**

Residential 14,997$ 15,462$ 15,691$ 16,469$ 18,065$ Commercial 7,253 7,405 8,041 8,465 9,379 Light Industrial 296 334 376 409 444 Utility & Other 310 380 370 382 392

22,856$ 23,581$ 24,478$ 25,725$ 28,280$ *Excludes specified area taxation (included in Revenue by Source schedule).**Increase in taxation partially due to transition of Parks function to the City, away from RDNO.

PROPERTY TAX REVENUE PER CAPITA - General & Fire Taxes 588$ 606$ 632$ 668$ 728$

RATIO OF TAX RATES - COMMERCIAL TO RESIDENTIAL (General Taxes Only) 2.78 2.67 2.66 2.62 2.57

TOTAL PROPERTY TAXES COLLECTED 58,155$ 58,493$ 60,504$ 61,736$ 62,567$

% OF CURRENT TAXES COLLECTED 97.96% 97.81% 97.75% 97.92% 97.91%

TAXES LEVIED FOR OTHER AGENCIESProvincial School Taxes 20,349$ 20,284$ 20,351$ 20,097$ 21,319$ Regional District of North Okanagan 9,153 8,928 9,334 9,376 8,233 Regional Hospital Districts 1,789 1,720 2,069 2,359 2,695 Okanagan Regional Library 1,426 1,485 1,528 1,578 1,624 Other 599 575 557 547 573

33,316$ 32,992$ 33,839$ 33,957$ 34,444$

Property Tax Revenue 2014

$-

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

2010 2011 2012 2013 2014

Property Tax Revenue - General & Fire (in $1,000's)

Residential Commercial Light Industrial Utility & Other

$-

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

$40,000

2010 2011 2012 2013 2014

Taxes Levied For Other Agencies

(in $1,000's)

OtherOkanagan Regional LibraryRegional Hospital DistrictsRegional District of North OkanaganProvincial School Taxes


(In $1,000's except for per-capita figures) 2010 2011 2012 2013 2014

Property Taxation* 24,745$ 25,524$ 26,450$ 27,750$ 32,413$

Sale of Services & Other 7,331 7,643 7,478 7,442 11,354

Sanitary Sewer Fees 8,928 8,754 8,600 9,313 9,357

Government Grants 7,406 5,914 6,942 6,360 10,721

Services Provided to Other Local Govts 2,231 2,411 2,131 2,319 6,088

Fiscal Services** 1,738 1,942 1,603 2,618 13,961

Natural Gas System Revenue 2,988 2,846 2,796 2,596 2,509

Contributions From Developers 5,564 4,792 3,257 899 3,722

60,931$ 59,826$ 59,257$ 59,297$ 90,125$

*Includes specified area taxation (not included in Property Tax Revenue schedule).

**$12,047,000 gain due to asset swap with RDNO reported in Fiscal Services.

Derived from the General Fund, Sewer Fund, Statutory Reserve Funds, and wholly-owned subsidiaries

TOTAL REVENUE PER CAPITA 1,567$ 1,537$ 1,531$ 1,539$ 2,319$

PROPORTION OF PROPERTY TAXATION

TO TOTAL REVENUE 40.6% 42.7% 44.6% 46.8% 36.0%

Consolidated Revenue by Source 2014

$-

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

$80,000

2010 2011 2012 2013 2014

Consolidated Revenue by Source (in $1,000's)

Contributions From Developers

Natural Gas System Revenue

Fiscal Services

Services Provided toOther Local GovtsGovernment Grants

Sanitary Sewer Fees

Sale of Services & Other

Property Taxation


(In $1,000's except for per-capita figures) 2010 2011 2012 2013 2014General Government 8,380$ 8,209$ 9,617$ 9,379$ 10,063$ Police Services 9,532 10,162 10,004 9,744 10,417 Fire, Rescue & Emergency Services 4,590 4,410 4,889 5,502 4,970 Bylaw Enforcement & Parking Control 1,033 1,128 1,138 1,171 1,118 Planning & Building Inspection 2,082 2,055 1,973 1,813 1,861 Engineering Services 1,070 1,214 1,235 1,337 2,079 Sanitary Sewer Operations 8,185 8,380 7,950 7,850 7,924 Transportation, Parks & Drainage 17,664 17,750 17,797 16,932 17,737 Solid Waste, Recycling & Cemetery 2,008 1,955 2,024 2,038 2,120 Recreation - - - - 6,346 Natural Gas System 2,158 2,156 2,021 1,282 1,352

56,702$ 57,419$ 58,648$ 57,048$ 65,987$

Derived from the General Fund, Sewer Fund, Statutory Reserve Funds, and wholly-owned subsidiaries. For purposes of this

table, all interest, fiscal service expenses, amortization, and capital expenditures have been integrated in their respective functions.

TOTAL EXPENSES PER CAPITA 1,458$ 1,476$ 1,515$ 1,481$ 1,698$

PERCENTAGE CHANGE IN PER-CAPITA EXPENSES FROM PRIOR YEAR 13.6% 1.2% 2.7% -2.2% 14.7%

Consolidated Expenses by Function 2014

$-

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

2010 2011 2012 2013 2014

Consolidated Expenses by Function (in $1,000's)

RecreationNatural Gas SystemSolid Waste, Recycling & CemeteryTransportation, Parks & DrainageSanitary Sewer OperationsEngineering ServicesPlanning & Building InspectionBylaw Enforcement & Parking ControlFire Rescue & Emergency ServicesPolice ServicesGeneral Government


(In $1,000's) 2010 2011 2012 2013 2014

Salaries, Wages & Employment Benefits* 17,692$ 18,359$ 19,156$ 20,074$ 23,740$

Supplies, Materials & Other 5,643 5,270 5,099 5,079 5,502

Contracted Services 15,973 17,168 17,181 16,043 19,546

Interest, Fiscal Services & Asset Losses 4,557 3,725 3,519 2,164 1,728

Utilities, Telephone & Insurance 2,026 2,184 2,519 2,463 4,049

Amortization of Tangible Capital Assets 10,811 10,713 11,174 11,225 11,422

56,702$ 57,419$ 58,648$ 57,048$ 65,987$

Derived from the General Fund, Sewer Fund, Statutory Reserve Funds, and wholly-owned subsidiaries

Consolidated Expenses by Object 2014

*Salaries, wages & employment benefits increased substantially in 2014 due to the City taking over responsibility for the operation of Parks and Recreation Services.

$-

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

2010 2011 2012 2013 2014

Consolidated Expenses by Object (in $1,000's)

Amortization ofTangible Capital AssetsUtilities, Telephone& InsuranceInterest, Fiscal Services& Asset LossesContracted Services

Supplies, Materials & Other

Salaries, Wages &Employment Benefits


Number of Employees (Full-time Equivalents)* 2010 2011 2012 2013 2014**

Administration & Corporate Services:

General Administation 6.2 2.5 2.1 2.0 2.0

City Clerk's Office 7.2 8.8 8.2 8.2 7.9

Human Resources 6.0 6.3 6.4 5.9 7.3

Information Services 7.2 7.7 7.9 7.8 9.4

Bylaw Enforcement 12.3 12.9 12.9 12.9 11.5

Community Policing Office 5.8 7.0 6.8 6.0 5.0

Finance & Purchasing 16.2 18.0 17.9 17.0 17.7

Engineering & GIS 12.6 15.2 14.4 14.5 16.0

Community Development 20.5 19.3 18.4 16.7 16.7

Fire & Rescue 37.7 39.9 40.6 41.5 40.2

Police (civilian staff) 33.3 31.6 31.4 31.7 32.0

Operations:

Operations Administration 3.3 3.4 3.1 3.2 3.0

Sanitary & Storm Sewers 23.6 25.5 26.6 13.9 14.6

Water ** 15.6 16.5 16.6 16.9 16.4

Public Works 22.9 25.8 26.1 28.6 28.5

Parks ** 13.0 11.1 13.5 10.7 10.2

Fleet & Facilities 13.3 13.0 13.1 12.9 11.5

Vernon Water Reclamation Plant 12.7 12.6 12.8 12.9 12.2

Airport 1.5 1.2 1.6 1.6 1.6

Recreation ** 39.8 39.5 40.9 40.1 52.9

Gross Number of Employees 310.7 317.8 321.3 305.0 316.6

* Full-time equivalent (FTE) is based on the total number of hours worked as a function of standard full-time hours.

** Less: Number of employees for which full employment

costs are recovered by the Regional District of North Okanagan for Parks, Recreation, Water (2014 - Water only) (68.4) (67.1) (71.0) (67.7) (16.4)

Net Number of Employees (relating to total employment

costs recorded by the City of Vernon) 242.3 250.7 250.3 237.3 300.2

Gross FTE Positions per 1,000 Population 8.0 8.2 8.3 7.9 8.1

Net FTE Positions per 1,000 Population 6.2 6.4 6.5 6.2 7.7

Source: City of Vernon Human Resources

Number of Employees (Full-time Equivalents)* 2014

220.0

240.0

260.0

280.0

300.0

320.0

2010 2011 2012 2013 2014

Net Number of Employees (FTE's)

5.0 5.5 6.0 6.5 7.0 7.5 8.0

2010 2011 2012 2013 2014

Net FTE Positions per 1,000 Population


(In $1,000's) 2010 2011 2012 2013 2014

Administration & Corporate Services 3,103$ 3,272$ 3,325$ 3,586$ 3,172$

Finance & Purchasing 1,159 1,263 1,297 1,317 1,308

Engineering 938 987 1,064 957 1,300

Planning & Building Inspection 1,618 1,639 1,555 1,431 1,483

Fire, Rescue & Emergency Measures 3,459 3,585 3,828 4,540 4,268

Police (civilian staff & community policing office) 2,447 2,547 2,565 2,605 2,556

Operations (new in 2014 - Parks) 4,968 5,066 5,522 5,638 6,372

Recreation (new in 2014) - - - - 3,281

17,692$ 18,359$ 19,156$ 20,074$ 23,740$

Costs are shown net of recoveries received from the RDNO for Parks, Recreation and Water functions. (Water only in 2014.)

Cost of Salaries, Wages and Benefits 2014

$-

$5,000

$10,000

$15,000

$20,000

$25,000

2010 2011 2012 2013 2014

Net Cost of Salaries, Wages & Benefits (in $1,000's)

Recreation (new - 2014)

Operations (new - 2014 includes Parks)Police (includesCommunity Policing)Fire, Rescue &Emergency MeasuresPlanning &Building InspectionEngineering

Finance & Purchasing

Administration &Corporate Services


(In $1,000's except for per-capita figures) 2010 2011 2012 2013 2014

Roads & Drainage Infrastructure 6,116$ 8,753$ 4,078$ 4,137$ 6,777$

Sanitary Sewer Infrastructure 3,435 3,300 1,946 1,692 3,038

Land Purchases* 1,219 513 9 596 12,765

Vehicle Fleet 496 300 987 145 653

Subsidiary Corporations 355 827 (52) 31 537 General Govt Buildings & Equipment 810 1,319 1,546 467 2,156 Information Technology Equipment 446 430 380 309 419

Protective Services Equipment 871 23 334 - -

13,748$ 15,465$ 9,228$ 7,377$ 26,345$

*Land purchases increased significantly in 2014 due to an asset swap agreement with RDNO resulting in a net asset value gain of $12,047,000.

TOTAL CAPITAL SPENDING PER CAPITA 354$ 397$ 238$ 191$ 678$

Capital Spending 2014

$(5,000)

$-

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

2010 2011 2012 2013 2014

Capital Spending (in $1,000's)

Protective ServicesEquipmentInformation TechnologyEquipmentGeneral GovernmentBuildings & EquipmentSubsidiary Corporations

Vehicle Fleet

Land Purchases

Sanitary SewerInfrastructureRoads & DrainageInfrastructure


(In $1,000's) 2010 2011 2012 2013 2014

General Taxation 542$ 5,380$ 283$ 466$ 1,549$

General Non-Statutory Reserves 4,324 2,811 3,976 3,452 3,622

Sanitary Sewer Revenue 1,470 1,431 - - 9

Sewer Non-Statutory Reserves 204 18 1,227 1,652 2,937

Statutory Reserve Funds 419 322 73 256 119

Development Cost Charges 4,112 4,681 2,322 51 921

Developer Contributions* - - 485 485 15,564

Long-Term Debt Bylaws 7 174 - - -

Government Grants & Other 2,670 648 1,527 1,015 1,624

13,748$ 15,465$ 9,893$ 7,377$ 26,345$

*Developer contributions increased significantly in 2014 due to an asset swap agreement with RDNO resulting in a net asset value gain of $12,047,000.

PROPORTIONAL BREAKDOWN OF CAPITAL FUNDING

FUNDING

General Taxation 3.9% 34.8% 2.9% 6.3% 5.9%

Sanitary Sewer Revenue 10.7 9.3 - - 0.0

Reserves 36.0 20.4 53.3 72.7 25.3

Developers 29.9 30.3 28.4 7.3 62.6

Long-Term Debt Bylaws 0.1 1.1 - - -

Government Grants & Other 19.4 4.2 15.4 13.8 6.2

100.0% 100.0% 100.0% 100.0% 100.0%

Capital Funding by Source 2014

$-

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

2010 2011 2012 2013 2014

Capital Funding by Source (in $1,000's)

Government Grants & OtherLong-Term Debt BylawsDeveloper ContributionsDevelopment Cost ChargesStatutory Reserve FundsSewer Non-Statutory ReservesSanitary Sewer RevenueGeneral Non-Statutory ReservesGeneral Taxation


LONG-TERM DEBT BY FUNCTION

2010 2011 2012 2013 2014Sanitary Sewer 17,484$ 16,782$ 16,101$ 15,395$ 14,651$ Natural Gas System 16,642 15,231 13,749 12,192 10,558 Roads & Drainage 2,858 2,620 2,372 2,115 1,847 General Government 552 506 459 409 357 Downtown Beautification 531 487 441 393 343

38,067$ 35,626$ 33,122$ 30,504$ 27,756$

PROPORTIONAL FUNDING SOURCES FOR LONG-TERM DEBT

Sanitary Sewer Fees 45.6% 46.7% 48.2% 49.9% 51.1%Sanitary Sewer Specified Areas 0.4 0.4 0.4 0.6 1.6 Roads, Drainage & Beautification Specified Areas 8.9 8.7 8.5 8.2 7.9 Natural Gas System Revenue & Reserve 43.7 42.8 41.5 40.0 38.0 General Taxation 1.4 1.5 1.4 1.4 1.3

100.0% 100.0% 100.0% 100.0% 100.0%

All water debt originally incurred by the City of Vernon has been transferred to and is recorded by the Regional District of North

Okanagan when this function was assumed by the Regional District. As such, this debt is not a liability of the City of Vernon and

is not recorded. No overlapping debt exists.

Long Term Debt by Function and Sources of Funding 2014

$-

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

$40,000

2010 2011 2012 2013 2014

Long-Term Debt by Function (in $1,000's)

DowntownBeautificationGeneral Government

Roads & Drainage

Natural Gas System

Sanitary Sewer

51.1%

1.6%

7.9%

38.0%

1.3%

Long-Term Debt Funding

Sanitary Sewer Fees

Sanitary SewerSpecified Areas

Roads, Drainage &BeautificationSpecified AreasNatural Gas SystemRevenue & Reserve

General Taxation


(In $1,000's except for per-capita figures) 2010 2011 2012 2013 2014LONG-TERM DEBT PER CAPITA 979$ 916$ 855$ 792$ 714$

% OF FINANCIAL EQUITY TO LONG-TERM DEBT 73.3% 70.4% 75.9% 96.5% 139.9%

ANNUAL DEBT SERVICING:Estimated Debt Servicing for Authorized Debt - Issued 4515 4,314 4,143 3,442 3,352 Unissued Debt 25 25 25 25 25 Estimated Debt Servicing for Loan Guarantees 716 716 716 716 716

5,256$ 5,055$ 4,884$ 4,183$ 4,093$

% OF ANNUAL DEBT SERVICING TO TOTAL CONSOLID. EXPENSES & PRINCIPAL PAYMENTS 9.0% 8.6% 8.3% 6.9% 7.0%

LEGAL DEBT SERVICING LIMIT 12,563$ 12,793$ 12,978$ 13,193$ 16,366$

REMAINING DEBT SERVICING LIMIT CAPACITY 7,307$ 7,738$ 8,094$ 9,010$ 12,273$

Long Term Debt Capacity 2014

$- $2,000 $4,000 $6,000 $8,000

$10,000 $12,000 $14,000 $16,000 $18,000

2010 2011 2012 2013 2014

Annual Legal Debt Servicing Capacity (in $1,000's)

Capacity AvailableCapacity Currently Used

$600

$800

$1,000

$1,200

1 2 3 4 5

Debt per Capita


(in $1,000's) 2010 2011 2012 2013 2014

Residential 5,681,349$ 5,689,870$ 5,582,742$ 5,406,304$ 5,320,195$

Commercial 989,505 1,038,220 1,078,428 1,086,765 1,093,901

Light Industrial 37,990 41,050 40,771 37,735 37,214

Recreation & Non-Profit 29,567 29,358 29,284 27,050 23,375

Utility 5,548 7,276 7,149 7,138 7,333

Farm Land & Managed Forest 4,016 4,037 4,069 3,920 3,988

6,747,975$ 6,809,811$ 6,742,443$ 6,568,912$ 6,486,006$

% Change From Prior Year 3.1% 0.9% -1.0% -2.6% -1.3%

AVERAGE SINGLE FAMILY RESIDENTIAL ASSESSED VALUES (in $1,000's)

Land 171$ 173$ 168$ 158$ 153$

Improvements 172 168 166 164 164

343$ 341$ 334$ 322$ 317$

% Change From Prior Year -2.0% -0.6% -2.1% -3.5% -1.6%

Taxable Property Assessments 2014

$-

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

$6,000,000

2010 2011 2012 2013 2014

Total Property AssessmentsResidential & Commercial

(in $1,000's)

Residential Commercial

$-

$50

$100

$150

$200

$250

$300

$350

$400

2010 2011 2012 2013 2014

Average Single Family Residential Assessed

Values (in $1,000's)

Land Improvements


General & 2013

Rank Category Property Owner Common Name Levied Rank

1 Retail First Okanagan Shopping Centres Vernon Smart Centre (Including Wal-Mart) 549$ 1

2 Retail Village Green Shopping Centre Inc. Village Green Mall 547 2

3 Retail Loblaw Properties West Inc. Real Canadian Superstore 310 3

4 Retail Sunstone Holdings Inc. Shops at Polson Park 199 5

5 Retail Realfund Investments (BC) Ltd Vernon Square (Northern Portion) 199 4

6 Hotel 460463 BC Ltd Sparkling Hills Resort 169 6

7 Retail Home Depot Holdings Inc The Home Depot 156 8

8 Office N & T Properties Ltd Kal Tire - Corporate Office 154 7

9 Retail Canadian Tire Corporation Ltd Canadian Tire 120 9

10 Office Timber Facility Ltd Tolko Industries - Corporate Office 106 10

11 Retail North Vernon Properties Inc The Brick & Red Robin 106 11

12 Retail Fruit Union Plaza Holdings Ltd Fruit Union Plaza 102 12

13 Retail Snowcat Property Holdings Ltd Vernon Square Safeway (Southern Portion) 99 14

14 Retail 4246551 Canada Inc Rona 98 13

15 Retail Loblaw Properties West Inc. Real Canadian Wholesale Club 80 16

16 Retail Home Hardware Stores Ltd Home Hardware 78 17

17 Entertainment Simple Pursuits Inc Gateway Casino & Entertainment 78 15

18 Brewery Sleeman Breweries Ltd Okanagan Spring Brewery 73 18

19 Hotel Jassi Holdings Ltd Holiday Inn (Including Ricky's Grill) 68 new

20 Retail Jabs construction Ltd Staples, TD Bank, Total Pet, Dry Cleaners 67 20

3,358$

28,280$

11.9%

Total General & Fire Tax Revenue - Top Twenty

Total General & Fire Tax Revenue - City Wide

Proportion of Taxes Paid by Top Twenty

(in $1,000's)

Principal Corporate Tax Payers 2014

Tax Contribution from Principal Corporate Taxpayers

Top Twenty Taxpayers, 11.9%

All Other Taxpayers, 88.1%


Building Permit Construction Values (In $1,000's) 2010 2011 2012 2013 2014

Residential 57,026$ 43,749$ 43,991$ 44,244$ 66,057$

Commercial 14,824 35,111 16,885 5,311 7,248

Institutional 1,974 35,606 1,084 861 18,632

Industrial 125 9,075 326 10 250

73,949$ 123,541$ 62,286$ 50,426$ 92,187$

Building Permit Fees (In $1,000's) 733$ 902$ 594$ 479$ 827$

Number of Building Permits Issued 416 327 322 316 329

Business Licence Fees (In $1,000's) 442$ 443$ 433$ 441$ 590$

Number of Licenced Businesses 3,176 3,279 3,244 3,240 3,141

Number of Land Use Applications Processed * 200 98 152 150 146

* Includes applications for Rezoning, OCP Amendment, Development Permit, Development Variance Permit, Board of Variance, ALR, and Subdivision

Source: City of Vernon Planning & Building Division

Building Permits and Business Licences 2014

$-

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

$140,000

2010 2011 2012 2013 2014

Building Permit Construction Values(in $1,000's)

IndustrialInstitutionalCommercialResidential

$- $100 $200 $300 $400 $500 $600 $700 $800 $900

$1,000

2010 2011 2012 2013 2014

Building Permit Fees(in $1,000's)

$320

$370

$420

$470

$520

$570

$620

2010 2011 2012 2013 2014

Business Licence Fees(in $1,000's)


Municipality 2011

Census* Representative

House Value Municipal

Taxes Regional

District Municipal

Fees Total Taxes &

Fees

Salmon Arm 17,464 $ 280,357 $ 1,378 $ 80 $ 673 2,131$

Coldstream 10,314 447,365 1,209 482 571 2,262

Chilliwack 77,936 325,943 1,578 46 656 2,280

Penticton 32,877 339,111 1,537 68 836 2,441

Cranbrook 19,319 249,014 1,830 38 678 2,546

Campbell River 31,186 272,747 1,607 234 747 2,588

Kelowna 117,312 451,036 1,818 159 796 2,773

West Kelowna 30,892 453,301 1,734 175 898 2,807

Vernon 38,150 358,226 1,284 350 1,184 2,818

Pitt Meadows 17,736 457,596 1,835 28 1,014 2,877

Kamloops 85,678 343,111 1,812 129 975 2,916

Port Coquitlam 56,342 527,408 2,048 31 909 2,988

Mission 36,426 379,673 1,842 40 1,131 3,013

North Vancouver 48,196 902,181 2,252 52 954 3,258

Port Moody 32,975 759,343 2,674 47 964 3,685

New Westminster 65,976 675,166 2,534 43 1,196 3,773

White Rock 19,339 890,514 3,276 52 484 3,812

Average 43,419 $ 477,182 $ 1,897 $ 121 $ 863 $ 2,880

Source: MCSCD Local Gov't Infrastructure and Finance - 2013 data *Source: BC Statistics

Municipal Comparison 2014

- 500

1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500

2014 Municipal Comparison of Taxes and User Fees on Representative House

MunicipalFeesRegionalDistrictMunicipalTax


2010 2011 2012 2013 2014Annual Estimated Population (Source: BC Statistics) 38,879 38,914 38,717 38,523 38,861

Population Growth Rates 1.4% 0.1% -0.5% -0.5% 0.9%

Annual Estimated Eligible Voters (based on population estimate) 29,990 30,989 31,341 31,693 32,045

Selected Statistics:

Taxable Area (hectares) 7,545

Total Area (hectares) 11,833

Paved Roads (kilometers) 287

Number of Fire Hydrants 1,238

Storm Sewer Pipes (kilometeres) 192

Sanitary Sewer Pipes (kilometers) 270

Residential Sewer Connections 9,267

Residential Sewer Billing Units 16,744

Commercial & Other Sewer Connections 1,024

Commercial & Other Sewer Billing Units 1,029

Sewer System Average Daily Flow 11,864 (cubic metres/day)

2006 and 2011 Census (Source: Statistics Canada)

Total 0 - 14 15 - 24 25 - 44 45 - 64 65+

2006 35,944 5,610 4,355 8,290 9,795 7,894

2011 38,155 5,370 4,430 8,505 11,050 8,800

Total Net Growth 2,211 (240) 75 215 1,255 906

Percent Growth 6.2% -4.3% 1.7% 2.6% 12.8% 11.5%

Population Demographics 2014

20,000

25,000

30,000

35,000

40,000

45,000

2010 2011 2012 2013 2014

Annual Estimated Population & Eligible Voters

Population Eligible Voters


CITY HALL | 3400 30 AVE | VERNON BC, V1T 5E6 | TEL 250 545 1361 | FAX 250 545 7876 | www.vernon.ca

2014 Annual Report The Corporation of the City of Vernon, British Columbia

city of vernon annual report

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